FEDERAL STAFFORD LOANS
Federal Stafford Loans are made by banks, credit unions and other lending institutions to eligible students who are enrolled at least half-time (6-8 credits) and making satisfactory academic progress. Federal Stafford Loans can be subsidized or unsubsidized. Subsidized Stafford Loans are need-based loans for which the government pays the interest on the loan while the student is in school or in deferment thereby subsidizing or supporting these loans. Financial need for subsidized loans is determined by the FAFSA. Unsubsidized Stafford Loans are non-need-based and the student is responsible for any interest that accrues during all in-school grace and deferment periods.

As of July 1, 2008 the interest rates on Subsidized Stafford Loans will be a fixed 6.0%; Unsubsidized Stafford Loans interest rates will remain at the current fixed rate of 6.8%.

FEDERAL PARENT PLUS LOANS
Federal PLUS Loans are for parents who want to borrow to help pay for their dependent student’s education. This provides additional funds for education expenses and, like Federal Stafford Loans, are made by a lender such as a bank, credit union, or savings and loan association.

Federal PLUS Loans enable parents with good credit histories to borrow for each student who is enrolled least half-time and is a dependent student. For PLUS loans first distributed after July 1, 1993, the annual loan limit is the student’s cost of education minus an estimated financial aid received. The current interest rate on Parent PLUS Loans is a fixed 8.5%.

Students who wish to decline any loan funds offered in their award packages need to “decline” the funds on their award letters, sign and return the award letter to the Office of Financial Aid within ten business days of their receipt of the award package.

To begin the Stafford or Parent PLUS Loan process please click on: www.hesaa.org/federalundergradapply.html