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Loans for Undergraduates
For Undergraduate Students we offer Federal Stafford Loans. Our Stafford loans are a low-cost way students can borrow money for college, offering:
- Fixed interest rate of 5.6% for subsidized Stafford loans; 6.8% for unsubsidized Stafford loans
- A 0.25% interest rate discount for auto-debit monthly payments
- No payments for up to 6 months after graduation
- No credit check or co-signer needed
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Stafford Loan Borrowing Limits
The maximum amount of Stafford loan money undergraduate students may borrow each year (as determined by the Federal government) is:
| |
Dependent Student ? |
Independent Student ? |
Freshman |
$5,500 |
$9,500 |
Sophomore |
$6,500 |
$10,500 |
Junior |
$7,500 |
$12,500 |
Senior |
$7,500 |
$12,500 |
Note: Dependent Undergraduate Students whose legal guardians do not qualify for a Parent PLUS Loan may qualify for the same maximum amounts as Independent Students.
Stafford Loan Interest Rates
Stafford Loan interest rates (as set by the Federal government ) for undergraduate students for the 2009 – 2010 academic school year are:
Stafford Loan Fees
Stafford Loan fees (as set by the Federal government ) for the 2009 – 2010 academic school year are:
- 1.0% default fee
- 0.5% origination fee
Stafford Loan Repayment Options
Federal Stafford loans do not have to be repaid immediately. Students have the option to postpone making payments until 6 months after graduation or their enrollment status drops below half-time (whichever comes first). Students can also choose to make interest-only payments while in school. Once in repayment, students can choose from the following repayment options:
- Standard Repayment: Monthly payments include both principal and interest and are fixed over the life of the loan (a maximum of 10 years). This plan has the highest monthly payment amount, but the lowest total interest cost. Estimate your monthly payments under this plan using the Great Lakes Account Payment Plan Estimator tool.
- Graduated Repayment: This repayment option allows you to have a lower monthly payment for the first few years and then an increased monthly payment thereafter. For example:
- For the first 2 years monthly payments will be interest-only.
- For the next 3 years payments will be slightly higher and include interest and some of the principal.
- For the remaining life of the loan payments will be made on a standard repayment plan.
Estimate your monthly payments under this plan using the Great Lakes Account Payment Plan Estimator tool.
- Income Sensitive Repayment: Your monthly payment amount is tied to a fixed percentage of your gross monthly income. Your payments must be greater than or equal to the interest that accrues. You must reapply every year (up to 5 years) and payments are adjusted annually to reflect changes in your income.
- New! Income Based Repayment: This new repayment plan will be available beginning July 1, 2009 for all Stafford loan borrowers. It will cap your monthly payments at 15% of the difference between your adjusted gross income and 150% of the applicable poverty level, taking into consideration your income, family size, and your total amount borrowed. As with the Income Sensitive Repayment plan, your monthly payment amount is adjusted annually based on changes in your income and family size. Unlike the Income Sensitive Repayment plan, there is no minimum monthly payment amount, and therefore, the minimum monthly payment amount can be lower than the monthly interest charges. The maximum repayment term is 25 years. After 25 years, any remaining debt will be forgiven.
- Extended Repayment: If you have an outstanding balance of principal and interest in FFELP loans totaling more than $30,000, then you may qualify to extend your repayment term up to 25 years. Estimate your monthly payments under this plan using the Great Lakes Account Payment Plan Estimator tool.
To learn more about Stafford loans:
Stafford Loan Basics Stafford Loan Eligibility
Applying for a Stafford Loan Stafford Loan Repayment
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