Federal Loan Programs/Direct Federal Stafford Loan
Undergraduate Students
Subsidized Federal Stafford Loan
The federal government guarantees loans from $3,500 to $5,500 for eligible undergraduates. These loans are made by the Department of Education and interest is subsidized. Interest rates for federally guaranteed student loans are set annually. Please consult the Department of Education website for the current interest rate: https://studentaid.ed.gov/types/loans/interest-rates.
Eligible Stafford Borrower Limits
Undergraduate Study
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1st year of study
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$3,500/academic year
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2nd year of study
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$4,500/academic year
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3rd, 4th and 5th years of study
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$5,500/academic year
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Cumulative limit
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$23,000
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Students must file the FAFSA to determine eligibility for a Stafford Loan. Subsidized loan eligibility is limited for first-time borrowers to 150 percent of the length of the borrower's educational program.
Unsubsidized Federal Stafford Loan
Students who meet the eligibility requirements under section 484 of the Higher Education Amendments and who do not qualify for interest subsidies under the Stafford Loan program may borrow under the Unsubsidized Stafford Loan program. Like the Federal Subsidized Stafford Loan program, the Unsubsidized Stafford Loan is available to all eligible students, and students must complete a valid need analysis.
Unsubsidized Stafford Loans are not need-based; interest accruing on the loan is not subsidized (or paid) by the federal government while the student is in school. Students must therefore make interest payments while in school or allow the interest to capitalize. Interest rates for federally guaranteed student loans are set annually. Please consult the Department of Education website for the current interest rate: https://studentaid.ed.gov/types/loans/interest-rates.
Graduate Students
William D. Ford Unsubsidized Direct Loan Program
The federal government guarantees loans up to $20,500 for eligible graduate students per academic year, and an aggregate limit of $138,500.
Students must file the FAFSA to determine eligibility for a Stafford Loan. New borrowers can complete a Master Promissory Note and Loan Counseling online at studentloans.gov. Lindenwood will receive electronic notification once the application is complete.
Unsubsidized Federal Stafford Loan
This loan provides for a maximum $20,500 a year and $138,500 aggregate for graduate students. Unsubsidized Stafford Loans are not need based and interest accruing on the loan is not subsidized (or paid) by the federal government while the student is in school. Students must therefore pay the interest payments while in school or allow the interest to capitalize. Interest rates for federally guaranteed student loans are set annually. Please consult the Department of Education website for the current interest rate: https://studentaid.ed.gov/types/loans/interest-rates.
Note: All graduate student loans are unsubsidized.