Federal Stafford Loans for Graduate Students
(Subsidized and unsubsidized)
Federal Stafford Loans:
Federal Stafford Loans for Medical Graduate Students are very much like those for Graduate students, but there are some differences in loan limits.
Federal Stafford loans are guaranteed student loans, made available to eligible students through the Federal Family Educational Loan (FFELP) program. Banks, Credit unions and other financial entities are approved through the FFELP program to fund Stafford loans to students. To receive a Federal Stafford loan, students must complete the Free Application for Federal Student Aid (FAFSA). The school then determines if the student is eligible for a need-based Subsidized Stafford loan, or a non-need based Unsubsidized Stafford loan, or, the student may qualify for a combination of the two.
General Federal Stafford Loan information:
- There is a grace period of 6 months after graduation or dropping below half-time attendance before repayment of the principal of the loan begins.
- Loan amounts are awarded based on the class level and cannot exceed the established student cost of attendance established by the school, including other aid (see the table below for class level eligibility).
Fees: the following fees are generally deducted from the loan prior to disbursement.
- 1% Guarantee/Default Fee
- 1% Origination Fee
Federal Subsidized Stafford Loans:
The government pays the interest on the Subsidized Stafford Loan while the student is studying at least 1/2 time (6 credit hours minimum), so eligibility for this loan is always taken first into consideration.
Federal Unsubsidized Stafford Loan:
An Unsubsidized Loan is not based on financial need. The student borrower of the unsubsidized loan is responsible for the interest from the time the loan is disbursed until it is paid in full. Borrowers may choose to pay the interest as it accrues while enrolled, or may defer the interest and allow it to accumulate. If interest is allowed to accumulate, it will be capitalized - that is, the interest will get added to the principal amount of the loan and will increase the amount to be repaid. If interest is paid as it accumulates, repayment overtime will be less.
Interest Rate: Federal Subsidized AND Unsubsidized Stafford Interest Rate for Graduate Students
Loans disbursed prior to July 1, 2006: variable; capped at 8.25%. For payment period of 7/1/2008 - 6/30/2009 rate will be 4.21%. (variable interest rate - based on the 91-day T-bill rate +1.7 during school/ 91 T-bill rate + 2.3 after graduation, set annually at the end of June each year.)
Loans disbursed after to July 1, 2006: fixed rate of 6.8%.
Graduate Student Annual Limits: (with the exception of Medical students)
Graduate Stafford Limits |
Subsidized/Unsubsidized combined |
Max Subsidized |
Medical |
9 month program |
$40,500 |
$8,500 |
| |
10 month program |
$42,722 |
$8,500 |
| |
11 month program |
$44,944 |
$8,500 |
| |
12 month program |
$47,167 |
$8,500 |
Medical Cumulative Total for All Stafford Loans: (as of 4/18/2008)
(including amounts received at the undergraduate study level):
|
|
Total Stafford: Subsidized & Unsubsidized Combined
|
Medical Student Aggregate limit |
$65,500 |
$224,000 |
Federal Stafford Loans for Graduate students cannot exceed a total of $224,000, with no more than $65,500 in Subsidized Stafford loan.
Notes about Borrowing:
You should always apply for any scholarships, fellowships, grants, and work study first, before you borrow. It's important to file the FAFSA early each year (as soon as possible after January 1 each year) so that you can be considered for as much "free" aid as possible before you consider a loan. Loans must be repaid, and it is important that you take time to calculate your expenses and borrow only what you need for your college expenses. If you do borrow through the Stafford, Perkins, or any other loan program, review your accounts regularly (at least twice a year, if not more often). Be aware of any limits to the program that you are borrowing from, and plan your enrollment so that you can complete your degree before your funding runs out. It is important to remember that the Stafford loan program does have limits (see above) and once you reach the limit you may not be eligible for any further funding from the Stafford Program.
National Student Loan Database
You can review your Stafford, Perkins, and Federal Grant history through secure login to the National Student Loan Database at www.nslds.ed.gov This is a site created to collect information from schools and lenders so that your aid can be more efficiently processed. It is a secure site, and only authorized personnel can log on. It is updated every 30-60 days by the schools and lenders, so recent disbursements may not show immediately.
Steps receiving a loan:
Loan Process:
- Complete your FAFSA.
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- After you are awarded, determine the amount you will need to borrow, after considering your expenses and your resources ( Aid, Income, etc...)
- Accept, Reduce, or Decline your loan offer as you need from your Financial Aid Student ToolKit.
- If you are accepting the loan, you need to choose a lender. You may choose any lender that participates in the Federal Family Education Loan Program (FFELP).
- Complete Loan Entrance Counseling.
- Complete a Master Promissory Note. In many cases you will be able to complete this online.
- Complete a Account Refund Statement to authorize FSU to disburse your funds either through electronic funds transfer to an FSUCard/SunTrust account or through check by mail to your local address on file with FSU.
Lender Listing:
Florida State University, in accordance with the Florida Code of Conduct affirms the following:
- You may use any lender that is approved to participate in the Federal Family Educational Loan (FFELP) Program by the U.S. Department of Education.
- The lenders here are provided as a starting point for your research. For questions on specific benefits or service, call the lender directly.
- You are not required to use an FSU recommended lender.
- Selection of a non-recommended FFELP approved lender will not delay your loan processing.
To notify FSU of your lender choice, log in to your secure Financial Aid Student Toolkit available through Blackboard (current students) or through the OFA View your Status page ( for incoming students).
last updated : August 18, 2008
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