Print This PageFederal Stafford Loans
Federal Stafford loans are available through either the Federal Family Education Loan (FFEL) Program or the William D. Ford Federal Direct Loan ("Direct Loan") Program. The terms and conditions of a FFEL Stafford Loan and a Direct Loan are similar. The major differences between them are the source of the loan funds, some aspects of the application process, and available repayment plans. If you attend a Direct Lending school, you can learn about the Federal Direct Loan Program here.
Under the FFEL Stafford Loan Program, the funds for your loans are provided to you from a bank, credit union, or other lender that participates in the FFEL Program. If your school participates in Direct Loans, the school receives the funds for your loan directly from the U.S. government.
What types of Stafford Loans are available?
Federal Stafford Loans are either subsidized or unsubsidized.
- Subsidized Stafford Loans are low-interest loans that are based on financial need. Interest is paid by the federal government while you are attending school, during the six-month grace period following graduation or a change in enrollment status, and during specified loan deferment periods.
- Unsubsidized Stafford Loans are low-interest loans that are not based on financial need. You are responsible for all interest accrued on unsubsidized loans from the date the loan is disbursed, including the time that you attend school and also during grace periods and any type of loan deferment.
Who is eligible?
Undergraduate and graduate/professional students must attend an eligible school at least half-time. Students must be a U.S. citizen or an eligible non-citizen.
How do I apply?
To apply for a student loan, as well as to find out if you are eligible for federal grants and work-study, you must complete a
Free Application for Federal Student Aid (FAFSA).
If you are eligible for a Stafford Loan (subsidized or unsubsidized), you will be provided a Master Promissory Note (MPN), which is a legal agreement of repayment that you sign with your lender. If you need to choose an eligible lender, check with your school for assistance. Use of the MPN allows you to receive multiple loans under one note for a maximum ten-year period. (Direct Loans have a different application process.)
How much can I borrow?
The following charts show the maximum loan amounts for a full academic year as defined by your educational institution. Your financial need, other sources of aid, cost of attendance and length of academic year may affect the amount you can borrow.
Annual and Aggregate Loan Limits
| Grade Level |
Total Subsidized & Unsubsidized** |
| First Year |
$5,500 |
| Second Year |
$6,500 |
| Third Year and Beyond |
$7,500 |
| Graduate/Professional |
N/A |
* Dependent students whose parents are able to borrow a PLUS loan
** Less amount borrowed under Subsidized Loan Program
| Grade Level |
Subsidized Limit |
Unsubsidized Limit** |
| First Year |
$3,500 |
$9,500 |
| Second Year |
$4,500 |
$10,500 |
| Third Year and Beyond |
$5,500 |
$12,500 |
| Graduate/Professional |
$8,500 |
$20,500 |
| Health Professions |
$8,500 |
$47,167^ |
* Dependent students whose parents are unable to borrow a PLUS loan
** Less amount borrowed under Subsidized Loan Program
^ $47,167 is the total annual graduate professional Stafford loan maximum of $20,500 plus the maximum Health Education Assistance Loan of $26,667 in additional unsubsidized Stafford loans
| Classification |
Total Loan Limit |
| Dependent Undergraduates^ |
$31,000* |
| Independent and some Dependent Undergraduates† |
$57,500* |
| Graduate /Professional |
$138,500** |
| Health Professions |
$224,000** |
* No more than $23,000 of which can be subsidized
** No more than $65,000 of which can be subsidized
^ Dependent Students whose parents are able to borrow a PLUS loan
† Dependent students whose parents are unable to borrow a PLUS loan
Note: Your annual Federal Stafford loan eligibility is determined by each school's financial aid office. Please contact your financial aid office should you have eligibility questions. The additional amount of an unsubsidized Federal Stafford loan that a health professions student may borrow annually is based upon the student's academic program and the length of the academic year.
What are the interest rates?
Federal Stafford and PLUS loans have fixed interest rates. This means the interest rate will remain constant for the life of the loan. As of July 1, 2008:
- Subsidized Federal Stafford loans for undergraduate students have an interest rate of 6.00%;
- Subsidized Federal Stafford loans for graduate students have an interest rate of 6.80%;
- Unsubsidized Federal Stafford loans for undergraduate and graduate students have an interest rate of 6.80%; and
- Federal PLUS loans have an interest rate of 8.50%.
Loans disbursed prior to July 1, 2006, will continue to have a variable interest rate. This can result in a borrower having loans at different interest rates. For subsidized Federal Stafford loans, the federal government pays the interest while you are in school or in a grace or deferment period. For unsubsidized Federal Stafford loans, you are responsible for all interest that accrues on the loan. You may either make interest payments while you are in school or have the interest added to the principal of the loan. Each time the interest is added to your loan's principal, the total amount you will repay increases.
Is there a fee charged for these loans?
The lender subtracts 2 percent from your loan's principal balance for origination and default fees. The Department of Education receives 1 percent and the guarantor collects the remaining 1 percent. These fees help cover the costs of the loan program.
How will I receive my loan?
After your promissory note has been signed and approved, your school will notify you of the approved loan amount and the anticipated disbursement date. Typically, the loan funds will be sent to your school in two or more installments. Your loan money must first be used to pay for your tuition, fees, room and board, and other school charges. If loan money remains, you'll receive the funds usually by check unless you give the school written permission to hold the funds until later in the enrollment period.
When do I have to start repaying my loan?
Repayment of your Federal Stafford loan begins six months after you graduate or drop below half-time enrollment. This six-month period, called a grace period, is designed to allow you time to find a job. At the end of your grace period, you must begin making payments. The minimum monthly payment is $50, but you may have to make a higher monthly payment depending on how much you have borrowed. For most repayment plans, you will have a maximum of 10 years to pay off your loan.
For more information on repaying your loan, see Tips on Borrowing and Repaying Student Loans or visit the Oklahoma Guaranteed Student Loan Program website.
Can my loan be cancelled or forgiven (discharged)?
A loan can be cancelled or forgiven only under specific circumstances. A discharge releases you from all obligations to repay your loan. For more information on the qualifications for a cancellation, see Tips for Borrowing and Repaying Student Loans or visit the
Oklahoma Guaranteed Student Loan Program website.