Financial Aid
Federal Stafford Loans
Subsidized Stafford Loans
Subsidized Stafford Loans are awarded to students with demonstrated financial need. Interest rate is fixed at 5.6% for undergraduates and 6.8% for graduate borrowers. Interest is subsidized (paid) by the government until six months after you leave school or drop below half-time enrollment status. Loan goes into repayment six months after the student graduates or ceases half time enrollment.
Unsubsidized Stafford Loans
Unsubsidized Stafford loans are available to all students regardless of income. Interest rate is fixed at 6.8%. Interest accrues from the date of disbursement, but the extra costs of accrual can be avoided by making regular interest payments while in school. Loan goes into repayment six months after the student graduates or ceases half-time enrollment.
Stafford Interest Rates
Current Stafford Loan interest rates in effect from 07/01/2009 to 06/30/2010
| Stafford Interest Rates | |||
| Academic Year | Subsidized Rate | Unsubsidized/Graduate Rate | |
| 2008-09 | 6.00% | 6.80% | |
| 2009-10 | 5.60% | 6.80% | |
| 2010-11 | 4.50% | 6.80% | |
| 2011-12 | 3.40% | 6.80% | |
| 2012-13 | 6.80% | 6.80% | |
Note: Graduate Stafford Loans (both subsidized and unsubsidized) have a fixed interest rate of 6.8% through 2013.
Stafford Loan Fees
For Stafford Loans that are first disbursed between July 1, 2009 and June 30, 2010, there is a fee of up to 1.5 percent of the loan, deducted proportionately from each loan disbursement. For a FFEL Stafford Loan, a portion of this fee goes to the federal government, and a portion goes to the guaranty agency (the organization that administers the FFEL Program in your state) to help reduce the cost of the loans.
| Origination Fee Schedule | |||
| For Loans first disbursed in the following academic year | |||
| 2008-2009 | 1.0% | ||
| 2009-2010 | 0.5% | ||
| After July 1, 2010 | 0% | ||
Borrowers may be charged a default fee up to 1.0%
Stafford Loan Borrower Annual and Aggregate Loan Limits
| Annual Loan Limits | |||
| Grade Level | Maximum Subsidized | Unsubsidized | Total Yearly Amounts |
| Freshman (DEP) | $ 3,500 | $ 2,000 | $ 5,500 |
| Freshman (INDEP) | $ 3,500 | $ 6,000 | $ 9,500 |
| Sophomore (DEP) | $ 4,500 | $ 2,000 | $ 6,500 |
| Sophomore (INDEP) | $ 4,500 | $ 6,000 | $ 10,500 |
| Junior/Senior (DEP) | $ 5,500 | $ 2,000 | $ 7,500 |
| Junior/Senior (INDEP) | $ 5,500 | $ 7,000 | $ 12,500 |
| Graduate | $ 8,500 | $ 12,000 | $ 20,500 |
| Aggregate Loan Limits | |||
| Classification | Maximum Subsidized | Unsubsidized | Maximum Total |
| Undergraduate (DEP) | $ 23,000 | $ 8,000 | $ 31,000 |
| Undergraduate (INDEP) | $ 23,000 | $ 34,500 | $ 57,500 |
| Graduate | $ 65,500 | $ 73,000 | $ 138,500 |
Average Loan Indebtedness
| Average Loan Indebtedness for the graduating class of 2008 (1290 Students) | |||
| Loan Type | Number of Borrowers | Percent of Graduating Class | Average Borrowed |
| All Loans: | 819 | 63% | $ 18,759 |
| Federal Loans: | 804 | 62% | $ 16,806 |
All Loans includes Federal Stafford loans (subsidized and unsubsidized), Federal Perkins loans, and private alternative loans. PLUS loans are not included in this average.
Federal Loans includes Federal Stafford loans (subsidized and unsubsidized) and Federal Perkins loans. PLUS loans are not included in this average.
The graduating class is comprised of students graduating with undergraduate degrees between July 1st, 2007 and June 30th, 2008.
The method used to generate these statistics is based on the Common Data Set reporting process.
In order to apply for a Stafford Loan at UCCS
- Complete the Free Application for Federal Student Aid (FAFSA).
- Enroll in at least 6 credit hours for undergraduate students or 3 credit hours for graduate students.
- Complete your financial aid file.
- Maintain satisfactory academic progress.
- Complete Stafford entrance counseling.
- Choose a lender. Refer to the UCCS Suggested Lender List.
- Complete a Loan application.
- Complete a Master Promissory Note if you are a first time borrower or changing lenders.
Stafford Borrower Rights and Responsibilities
As a Stafford Loan borrower, you are expected to understand your rights and responsibilities. For more information, consult the Stafford rights and responsibilities page.
Stafford Loan Vocabulary
- Capitalization: When accrued/deferred interest is added to the principle amount of the loan and additional interest will be based upon the higher amount (i.e. you pay interest on the interest). Most lenders capitalized only once immediately before repayment begins, but it is best to confirm this with your lender. You will reduce the amount of interest that you pay be paying the interest as it accrues each month before entering repayment.
- Deferment: A period in which a borrower is allowed to postpone payments on the loan principle. The interest accrues and is capitalized if the borrower has an unsubsidized Stafford Loan.
- Default: If you fall 270 days behind on your loan payments. If you default, you will be reported to national credit bureaus, your wages can be garnished, your income tax refund can be withheld, and you will not be able to get student aid to return to school. To avoid default, make sure your lender always has your current address, and contact the lender if you are having trouble making payments. Your lender may be able to grant you forbearance or make other arrangements to keep you from defaulting.
- Forbearance: A special agreement between the lender and the borrower to delay or reduce monthly loan payments because of financial hardship.
- Repayment: The period in which a borrower takes the responsibility to pay back the loans that helped finance the cost of education. For a look at your sample repayment chart please go to the repayment calculator at http://www.mappingyourfuture.org/paying/standardcalculator.htm.