Stafford Loan Amounts

Stafford Loan Maximum Amounts

The Stafford Loan program isn't designed to pay 100% of your college education expenses but it can take a big chunk of the burden off of your shoulders.

There are two types of Stafford Loan programs; Subsidized and Unsubsidized. A subsidized Stafford loan is one where the U.S. Government pays the interest on the loan while you are enrolled in school and for up to six months after you graduate. Six months after you either graduate or leave school for any other reason, the subsidy stops and you become liable for the interest from that point on.

The interest rates are subject to change once per year on July 1st. There are actually two interest rates. The lower one applies while you are attending college and then it goes up after you graduate.

You have up to 10 years after graduating or leaving school to pay the loan off. The minimum annual payment is $600 per year or $50 per month.

You must meet federal income guidelines to qualify for a subsidized Stafford Loan as well as all of the other requirements that we listed on our (link to requirements) page.

There are no income guidelines for an unsubsidized Stafford Loan but you still must meet all of the other eligibility requirements that we listed on our (link to requirements) page.

An unsubsidized Stafford Loan works essentially the same way as a subsidized one does except you are responsible for the interest payments from day 1.

Both subsidized and unsubsidized Stafford Loans are issued without any credit check so you are not penalized if your credit is not A+.

Stafford Loan Limits

There are a few factors which affect your Stafford Loan limits. The first factor is whether you are a "dependant" or an "independent" student. All this means is that dependant students have parents or guardians who are helping to foot the bills while independent students are on their own.

The next factor that affects the Stafford Loan limit is what year of college you are in. The limits go up as your progress from Freshman through Graduate student levels. There are maximum loan limits that come into effect over your lifetime as a student.

The next factor is the amount of financial aid you are receiving from other sources. These amounts are taken into consideration when calculating your loan eligibility limits.

The final deciding factor is your school's financial aid office. They can approve, disapprove, or limit your eligibility. The decision of the school is final and may not be appealed to the Stafford Loan administrators.

Here is a chart which explains the Stafford Loan Limits which was supplied courtesy of the Stafford Loan program. Limits are subject to change so check with your college financial aid office for the latest information.

	Dependent Undergraduate Students	Independent Undergraduate Student	Graduate/Professional Student
1st Year	$2,625	$6,625–No more than $2,625 of this amount may be in subsidized loans.	$18,500–No more than $8,500 of this amount may be in subsidized loan.
2nd Year	$3,500	$7,500–No more than $3,500 of this amount may be in subsidized loans.
3rd and 4th Years (each)	$5,500	$10,500–No more than $5,500 of this amount must be in subsidized loans.
Maximum Total Debt from Stafford Loans When You Graduate	$23,000	$46,000–No more than $23,000 of this amount may be in subsidized loans.	$138,500—No more than $65,500 of this amount may be in subsidized loans. The graduate debt limit includes Stafford Loans received for undergraduate study.

If your term of study is less that a usual "academic year" the amounts that you may borrow will be less.

That's the story on Stafford Loan amounts but, as we said, you should always check with your college financial aid office for the latest information.

Once you get that Stafford Loan you're going to want to make the most of it. Read about Maximizing your Stafford Loan.