Stafford Loans: Loan Amounts for the Federal Stafford Loan

The Stafford loan was created by the United States government in an effort to help Americans achieve post-secondary education goals via assistance in the form of federal grants, federal scholarships, work study, and the federal Stafford loan. These loans are applied for by filling out the FAFSA or Free Application for Federal Student Aid available at more than 4,000 schools nationwide.
Once a FAFSA is completed, it could take some time to receive the SAR or Student Aid Report. In the meantime, students waiting for that report can use this guide to better understand loan amounts for the Stafford loan.

There are two types of loans and different award amounts under each type available through this program. These include:

Subsidized Stafford Loan: With this product, the government pays the interest on the loan while the student is still enrolled in school, in a grace period, or in deferment. Once the student drops below half-time status, graduates or withdraws, interest will begin to accrue on the balance at a low rate of only 6.8%.

Unsubsidized Stafford Loan: Interest accrues on this loan from the day it is dispersed at a rate of 6.8%. As a result, students are strongly encouraged to pay the interest on an unsubsidized loan while they are still in school.

The total amount that a student can get depends in part upon the type of loan as described above. In general, students can expect that the maximum amounts available for a Stafford loan are as follows:

Dependent Undergraduate Students: $5500 maximum per academic year, $31000 lifetime total

Independent Undergraduate Students: $9500 maximum per academic year, $57500 lifetime total

Graduate & Professional Students: $20500 per academic year, $138500 lifetime total

In most cases the total amount available each year increases- generally by one thousand dollars or more. Additionally, some students enrolled in certain degree programs may be able to apply for loan forgiveness. In order to find out more, simply speak to a financial aid representative or click here to apply for a Federal Stafford Loan now.