Federal Stafford Loan (Subsidized and Unsubsidized)

The Advantages of Working with The Student Loan People

• Quick application processing
• Quality servicing for the life of the loan
• Discounted fees
• Repayment incentives

Borrower Eligibility

• Must be an undergraduate or graduate student enrolled at least half-time in a degree or certificate program, and
• Be a U.S. citizen, permanent resident or eligible non-citizen

Application Requirement

• Complete a Free Application for Federal Student Aid (FAFSA) (This also applies for federal grants and work-study, as well as for many state financial aid programs).
• Complete a Stafford Master Promissory Note. You can do this online or print out a paper copy.

Maximum Stafford Loan Amounts per Year (as of July 1, 2008):

Annual limits Maximum amounts for each year of study
Grade Level	Subsidized	Total subsidized and unsubsidized
Dependent undergraduates1
First year	$3,500	$5,500
Second year	$4,500	$6,500
Third year and beyond	$5,500	$7,500
Independent undergraduates2
First year	$3,500	$9,500
Second year	$4,500	$10,500
Third year and beyond	$5,500	$12,500
Graduate and professional students	$8,500	$20,500
Aggregate limits3 Maximum amounts over academic career
Dependent undergraduates	$23,000	$31,000
Independent undergraduates2	$23,000	$57,500
Graduate and professional students	$65,500	$138,500

¹All undergraduate annual loan limits are subject to proration.
²and dependents whose parents are unable to borrow PLUS loans.
³If the borrower does not meet financial need for a subsidized Stafford Loan using the expected family contribution (EFC), or has reached the aggregate limit in subsidized Stafford loans, the borrower may receive this entire loan amount in unsubsidized Stafford loans provided the borrower has remaining eligibility.

Interest Rate

Interest for Subsidized loans is generally paid by the U.S. Department of Education (ED) while you are in school. ED does not pay interest for Unsubsidized loans, which means you are responsible for the accrued interest. If you do not pay the interest while in school, interest is capitalized (added to the principal balance).

As of July 1, 2008, the interest rate on subsidized Stafford Loans for undergraduate students is 6.0%. The interest rate on unsubsidized Stafford Loans for undergraduate students is 6.8%. The interest rate on both subsidized and unsubsidized Stafford Loans for graduate students is 6.8%.

Loans disbursed before July 1, 2006, have a variable interest rate that changes every year. The variable rate is based on the 91-day Treasury bill rate. Your lender will let you know each year what the new interest rate is on any variable-rate loans you have.

Repayment

Loans convert to repayment six months after you leave school or drop below half-time status. The maximum repayment period is 10 years but may be extended for unusual circumstances.

Billing

Convenient monthly statement

Fees

• 1% loan origination fee
• 0% federal default fee (Kentucky borrowers only)

Disbursement

The loan is disbursed in one of the following manners, depending on your school's preference:

• Individual check made payable to the student and sent to the school
• Master check made payable to the school representing loan proceeds for more than one student applicant
• Electronic Funds Transfer (EFT) sent to the school representing loan proceeds for more than one student applicant

Lender

The Student Loan People
Lender Code: 826688

Telephone Number

Loan Origination	Loan Servicing
800.564.6068	800.693.8220