The Federal government provides educational loans for Graduate students who are U.S. citizens, permanent residents, and eligible non-citizens, some of which is not based on need. Graduate students who are matriculated in a degree-granting program and enrolled at least half-time (5-8 credits) for each semester you are seeking assistance may apply. There are two types of Federal Stafford loans subsidized and unsubsidized with a maximum loan limit per award period is the lower of $20,500 or the cost of education.

The interest rate for all loans disbursed on or after July 1, 2006* is fixed at 6.8%. Federal Stafford Loans may be subjected to an origination fee up to 3 percent and a 1 percent default fee depending on your lender and/or guarantor. Loan fees are deducted from loan proceeds prior to the disbursement of funds and borrowers are responsible for repayment of all such fees. The minimum monthly repayment is $50, but can be more depending on the cumulative amount borrowed under the Federal Stafford Loan program.

The Subsidized Federal Stafford Loan is available to students who demonstrate financial need and cannot exceed $8,500 of eligibility. The federal government pays the interest on a subsidized loan while the borrower is enrolled in school at least half-time and for a six-month grace period after the student graduates, drops below half-time status, or withdraws, and during any in-school deferment periods. Once repayment begins, the borrower is responsible for interest at the end of the grace period.

The Unsubsidized Federal Stafford Loan is available for students who do not qualify, in whole or in part, for Subsidized Federal Stafford Loan funds. The federal government does not pay the interest on the borrower's behalf at any time. The borrower is responsible for all interest that accrues and can choose to either pay the interest while in school or add any deferred interest to the principal balance of the loan "capitalization". When interest is capitalized, the principal balance will be increased by the amount of unpaid interest.

* The interest rate for loans disbursed prior to July 1, 2006 remains variable and capped at 8.25 percent. It is adjusted every July 1 and is based on the 91-day T-bill rate plus 1.7 percent during enrollment, grace, and deferment periods and the 91-day T-bill rate plus 2.3 percent during repayment. The current rate for 7/1/07-6/30/08 is 6.62% in- school/grace/deferment and 7.22% in repayment/forbearance.