There is a 6-month grace period following graduation or when enrolled less that half-time or leaving school altogether before you must begin repaying your loan.

Both the Direct Loan and FFEL programs offer four repayment plans you can choose from, but the terms differ slightly. Please note: some colleges participate only in the Federal Direct Loan Program, which might mean you do not have a choice of lender.

Information You’ll Receive

Your school must notify you in writing whenever it credits your account with your Direct or FFEL Stafford Loan funds.

Loan Limits

The federal government under Title IV of the Family Education Loan Program sets loan limits. Loan limits vary depending on your student status. 

The loan limits described below apply to both the FFEL and Direct Loan programs and are cumulative.
The limits may be a little confusing because there are two sets of limits for the Stafford loan: a combined base limit for the subsidized and unsubsidized Stafford loan, and an additional limit for just the unsubsidized Stafford loan. 

The program limits are $4,000 per year for undergraduate students and $6,000 per year for graduate students, with cumulative limits of $20,000 for undergraduate loans and $40,000 for undergraduate and graduate loans combined.

Dependent Annual loan limit

·    Freshman $5,500 ($3,500 between subsidized and unsubsidized, plus an additional $2,000 unsubsidized)
·    Sophomore $6,500 ($4,500 between subsidized and unsubsidized, plus an additional $2,000 unsubsidized)
·    Junior or senior $7,500 ($5,500 between subsidized and unsubsidized, plus an additional $2,000 unsubsidized)

Independent Annual loan limit

·    Freshman $9,500 ($3,500 between subsidized and unsubsidized, plus an additional $6,000 unsubsidized)
·    Sophomore $10,500 ($4,500 between subsidized and unsubsidized, plus an additional $6,000 unsubsidized)
·    Junior or senior $12,500 ($5,500 between subsidized and unsubsidized, plus an additional $7,000 unsubsidized)
·    Graduate or professional $20,500 ($8,500 between subsidized and unsubsidized, plus an additional $12,000 unsubsidized)
·    Lifetime limits Undergraduate dependent lifetime limit $31,000 (up to $23,000 may be subsidized)

Undergraduate independent lifetime limit $57,500 (between subsidized and unsubsidized)
Graduate or professional lifetime limit $138,500 (up to $65,000 may be subsidized) or $224,000 (for health professions) for loans first disbursed on or after July 1, 2008. 

Annual limits, which include both the subsidized and the unsubsidized Stafford Loan are as follows: $3,500 in the first year $4,500 in the second year $5,500 in the third year $5,500 in the fourth year. 

Consolidation of your Stafford loans…

In some cases it may be beneficial for you to consolidate one or more of your FFEL Stafford Loans into a Consolidation Loan. Consolidating loans can be a great way to simplify repayment and lower monthly payments, and Direct Loans can be consolidated with other student loans. When you consolidate your Stafford loans, you are locking in today's low rates, combining multiple payments into one and lowering your monthly payment. 

Final Things To Consider…

Stafford Loans carry a low, fixed interest rate, which is set by the Federal government.  Stafford Loans are federal student loans for undergraduate and graduate students.  Stafford Loans are the most widely used, low-cost education loans available from the United States Federal government. A Stafford Loan is a great way for you to secure the extra financial aid you require in order to meet your needs for college, university or trade school. 

Most college or university students can secure a Federal Stafford Loan to assist with their financial needs. Getting started as early as possible can be the difference between finding financing or not.

Don’t delay; your future depends on it. Prepare your college finances for a bright future.