New Undergraduate Federal Stafford Loans
July 10th, 2014
Borrowers of subsidized Stafford Loans first disbursed on or after July 1, 2014 are once again eligible for an interest subsidy during the 6-month grace period.
(Subsidized Stafford loans made from July 1, 2012 to June 30, 2014 were not eligible for subsidized interest benefits during the six-month grace period after a student graduates or falls below half-time enrollment. For loans made during those two years, interest accrues during the grace period and will be capitalized if unpaid by the borrower.)
The Budget Control Act of 2011 changed some aspects of student loans for graduate students.
As of July 1, 2012, graduate students no longer receive the interest subsidy on the Subsidized Stafford loan. The graduate Stafford loan program is entirely unsubsidized, which means the loan accrues interest while a student is in school. The maximum amount a student can borrow is $20,500 per academic year.
You may use a federal loan repayment calculator to better understand your total loan amounts and repayment options. We recommend the following website: Finaid Loan Calculators