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 in which seeking assistance may apply.

Stafford loans are the primary loans available and offered to each student who completes a FAFSA. The maximum loan limit per award year/period is $20,500 determination of eligiblity is based on student's cost of attendance, enrollment plans and housing status.

Federal Loan Interest rates and fees for 2009-2010 are as follows:

Note: The Federal "Direct" Loan program is administered by the federal government and the "FFEL" program is the traditional student loan program administered by a lender on behalf of the federal government.

There are two types of Federal Stafford loans:

Federal Subsidized Stafford Loan is available to students who demonstrate financial need.

• Maximum amount student can borrow is $8,500 depending upon eligibility.
• The federal government pays the interest 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.

Federal Unsubsidized Stafford Loan is available for students who may not have a demonstrated need.

• 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.

Download the Federal Stafford Loan Guide 2009/2010 (Adobe PDF)