The Federal Unsubsidized Stafford Loan is a student loan offered by the federal government and is part of the FFEL and Direct Loan Programs. In order for prospective students to qualify, they must first fill out a FAFSA or Free Application for Federal Student Aid Form. The FAFSA form determines if a student is eligible to receive federal student aid and takes into consideration the student, as well as the parent’s, current financial situation. If students qualify for a Unsubsidized Stafford Loan, then they will receive a form, called a SAR or Student Aid Report, that outlines the student’s expected family contribution or EFC. Qualified students will receive an award letter from his or her post-secondary institution explaining the award amount for the Unsubsidized Stafford Loan. Post Secondary Institutions will either participate in the FFEL or Direct Loan programs. The FFEL or Federal Family Education Loan Program and the Direct Loan Program are both student loan Programs that offer unsubsidized Students that apply for the Federal Unsubsidized Stafford Loan do not have to demonstrate financial need. This is a loan that students can borrower regardless of the family’s financial status. The post-secondary institution will deduct the total amount of a student’s financial aid from their cost of attendance to determine whether he or she is eligible for an Unsubsidized Stafford Loan. The Unsubsidized Stafford Loan limits are as follows: If you're a dependent undergraduate student, each year you can borrow up to: · $5,500 if you're a first-year student enrolled in a program of study that is at least a full academic year. · $6,500 if you've completed your first year of study and the remainder of your program is at least a full academic year. · $7,500 if you've completed two years of study and the remainder of your program is at least a full academic year. If you’re an independent undergraduate student, each year you can borrow up to: · $9,500 if you're a first-year student enrolled in a program of study that is at least a full academic year. · $10,500 if you've completed your first year of study and the remainder of your program is at least a full academic year. · $12,500 if you've completed two years of study and the remainder of your program is at least a full academic year. If you're a graduate or professional degree student, each year you can borrow up to $20,500 per year. FederalStaffordStudentLoan.com / StaffordLoanInterestRate.com /
Students are responsible for the student loan interest from the time the unsubsidized loan is dispersed until it is paid off. Students have the option to pay the interest or allow it to accrue or accumulate and just added to the principle. Students must be aware that if they do choose to accrue their interest then they will have a larger student loan amount.
StaffordLoanLimits.com /StaffordLoanForgiveness.com /StaffordLoan.org