Student Financial Services
Federal Stafford (Student) Loan Program
A Federal Stafford Loan is a low-interest student loan funded by the federal government through the Federal Direct Lending program. This is the largest federal financial aid program, and is made up of both Subsidized and Unsubsidized loan components. To apply, the first step is to complete the FAFSA. Your maximum loan amount depends on your FAFSA dependency status, your grade level (the cumulative number of credit hours you've earned) for the specific loan period for which you're borrowing (see the chart below), and the total amount of scholarship, grant, and other assistance you're receiving for the loan period. A credit check is not required for a student to be approved for Federal Stafford Loan Funds.
Subsidized Stafford Loan aid is awarded in accordance with your calculated financial need. No interest is charged, no repayment of principal or interest is required, and no interest accrues during the time you're enrolled at least half-time. You’re required to begin repayment of your Subsidized Stafford Loan six months after graduating or dropping below half-time enrollment status. The current Subsidized Stafford Loan interest rate is 3.4%. Beginning with the 2012 Fall semester, please be advised that a graduate student is no longer permitted to receive Subsidized Stafford Loan funds, even though (s)he may have a high level of financial need.
Unsubsidized Stafford Loan aid is awarded to you regardless of your financial need, although the FAFSA must still be completed and submitted. No repayment of the loan principal is required while you're enrolled at least half-time. However, interest (currently 6.8%) starts accruing once the loan is disbursed. The interest may be allowed to accrue and then be added to the loan principal (this is referred to as capitalization). However, many students wisely elect to pay the accrued interest on a quarterly basis in order to eliminate or reduce the effect of compounding. Beginning with the 2012 Fall semester, Unsubsidized aid is the only type of Stafford Loan a graduate student is permitted to borrow.
Students frequently receive a combination of Subsidized and Unsubsidized Stafford Loan funds in their financial aid packages.
Maximum Annual Stafford Loan Amounts
Grade Level |
Dependent Undergraduate
|
Independent Undergraduate |
Freshman |
$5500 |
$9500 |
Sophomore |
$6500 |
$10,500 |
Junior |
$7500 |
$12,500 |
Senior |
$7500 |
$12,500 |
Graduate |
N/A |
A graduate student fully admitted to a UCM masters or education specialist degree program may be considered for up to $20,500 in Unsubsidized Stafford Loan funds. However, the total amount borrowed may not exceed the student's assigned Cost of Attendance at the University of Central Missouri (less all other aid received for the borrower's loan period). |
Detailed information about the Federal Stafford Loan program is available here.
