Federal Stafford Student Loans
There are two types of Federal Stafford student loans,
subsidized and unsubsidized.
Federal Subsidized Stafford student loans
are need-based. The Federal government pays the interest on the loan
while the student is enrolled, during the grace period before repayment,
and during periods of approved deferment.
Federal Unsubsidized
Stafford student loans are not based on need and may be
borrowed by all qualified students, regardless of their incomes.
Students must meet the same requirements as those for Subsidized
Stafford loans, except they do not have to demonstrate financial need.
Because the Federal government is not paying the interest on these
loans, interest begins accruing from the time the loan is disbursed. As
such, the interest payments begin immediately but can be deferred. If a
student chooses to pay the interest while he/she is enrolled, the debt
will be the principal amount borrowed (and not the principal and
interest) when the borrower enters repayment.
General Stafford Loan
Information (applies to both types of Stafford loans)
Monthly payments begin six months after you graduate, drop below half
time status or withdraw from school.
Effective July 1, 2006, the Stafford Loan interest rate is a fixed rate of 6.8%. Stafford Loans borrowed before July 1, 2006 have a variable interest rate. See chart for applicable rate.
First time Stafford loan
borrowers ( or borrowers who have not borrowed since
1996 or who have repaid their previous Stafford loans) are required to
complete
Entrance Loan Counseling
and a
Master Promissory Note (MPN).
Teachers may be eligible for a portion of their loans being forgiven
under the
Teacher Loan Forgiveness Program.
Annual Loan Limits
Dependent Undergraduates
A dependent student is a student who is an undergraduate,
under 24 years of age, unmarried, has no dependents, and is not a
veteran. All other students are considered independent.
| Freshmen | $3,500 |
| Sophomores (30 credits) | $4,500 |
| Juniors & Seniors (60 credits) | $5,500 |
Independent
Undergraduates
(and dependent students whose parents are unable to borrow
under the Federal PLUS program)
| Freshmen | $3,500 Subsidized $4,000 Unsubsidized |
| Sophomores (30 credits) | $4,500 Subsidized $4,000 Unsubsidized |
| Juniors & Seniors (60 credits) | $5,500 Subsidized $5,000 Unsubsidized |
| Graduate & Professional Students | $8,500 Subsidized $12,000 Unsubsidized |
Aggregate Limits
Dependent Undergraduates
$23,000 Subsidized and Unsubsidized combined
Independent Undergraduates
$23,000 Subsidized
$46,000 Subsidized and Unsubsidized combined
Graduate & Professional Student
$65,500 Subsidized
$138,500 Subsidized and Unsubsidized combined
Students may borrow from any lender they
choose. For a list of UW-La Crosse's Preferred Lenders and the
benefits they offer, go to the
2008-09 Stafford Loan Process & Preferred
Lender List or
2007-08 Stafford Loan Process & Preferred
Lender List
Consolidation Loans
Consolidation lets you combine all of your Stafford loans
into a single loan however, students who are in school are not eligible
to consolidate their loans.
