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Loans for Undergraduates
We provide two types of federal loans to undergraduate students:
- Subsidized Stafford loans are based on need. The government pays the interest while you’re in school, six-months after you drop below half-time student status, and during any authorized deferment periods.
- Unsubsidized Stafford loans are not based on need. You’re responsible for the interest from the time the loan is first disbursed, even while you’re in school.
Stafford loans are intended for students who don’t qualify for other financial aid or who may need help beyond scholarships to afford the cost of education. All Stafford loans are provided through lenders like First Education FCU, Trona Valley FCU, UniWyo FCU, and WyoLoan. Click here to apply and to access the right forms.
Who it’s for |
Post-secondary students who may not qualify for other financial aid, or who may need help above and beyond grants and scholarships, but who cannot afford the cost of education without assistance |
Eligibility |
You must be:
- Accepted for enrollment or already enrolled at least half-time at a school in the FFEL Program
- Seeking a degree, professional credential, or teacher state certification
- Maintaining satisfactory academic progress
- Shown to be in financial need by the school you are or will be attending
- Proven to be eligible or ineligible for a Pell Grant by your school
- A U.S. citizen or national
- A dependent
- In good standing on any other government-regulated student loans and on any other federal financial aid program
- Registered with the Selective Service (males only)
You must not be:
- Serving in a medical internship or residency program, other than dentistry
- In excess of maximum Stafford loan amounts from all your lenders and guarantors
- Enrolled in either an elementary or secondary school
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Advantages |
A low-interest way to help pay for tuition, fees, room and board, books, supplies, transportation, and living expenses
You may borrow an unsubsidized Stafford loan to help meet the Expected Family Contribution
You may have a combination of subsidized and unsubsidized Stafford loans up to the loan limit for your year in school |
Benefits |
- Low interest rates
- $100 principal reduction for military
- No fees for check-by-phone or Web payments
- A nonprofit corporation that gives back to education
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Interest rate |
Subsidized Stafford loans for undergraduate students dispersed on or after:
- 7/1/08 - 6/30/09: 6.0%
- 7/1/09 - 6/30/10: 5.6%
- 7/1/10 - 6/30/11: 4.5%
- 7/1/11 - 6/30/12: 3.4%
Unsubsidized and Graduate Stafford loans disbursed on or after 7/1/08 - fixed 6.8% interest rate. |
Fees |
The 1% default (or insurance) fee is a protection against default, death, or disability. The 1.5% origination fee is charged by the federal government and will reduce annually on July 1 until it reaches 0%.
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Annual loan limits |
1st year of undergraduate study |
$3,500/year |
2nd year of undergraduate study |
$4,500/year |
3rd year and above of undergraduate study |
$5,500/year |
Total maximum for undergraduate study |
$23,000 |
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Graduate and professional students |
$8,500/year |
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Total maximum subsidized and unsubsidized for all education |
$65,500 |
Repayment |
Repayment of principal and interest on your subsidized Stafford loan begins six months after you fall below half-time student status.
For unsubsidized Stafford loans, we recommend you begin paying the interest after the loan is disbursed. However, you can elect to delay repayment until six months after you fall below half-time student status. With this option, the interest still accrues from the date the loan is disbursed, but the interest is added to the principal amount of the loan (this is called capitalizing). |
Independent Students
The chart above applies to students who are dependents. You can get extra funds through an unsubsidized Stafford loan if you’re an independent undergraduate student or a graduate student for whom the Stafford loan limit maximums are not enough to meet the cost of education.
You are an independent student if you meet any one of the following seven criteria:
- You are at least 24 years old
- You are married
- You are enrolled in a graduate or professional educational program
- You have, and care for, legal dependents other than a spouse
- You are an orphan or ward of the court (or were a ward of the court until age 18)
- You are a veteran of the U.S. Armed Forces
- You are serving active duty in the military for purposes other than training.
Simply not living with your parents or not being claimed as a dependent for their taxes does not qualify you for independent status.
If you answered “yes” to at least one of the above criteria, you may qualify for these additional loan limits:
1st year and 2nd year of undergraduate study $4,000/year
3rd year and above of undergraduate study $5,000/year
Total maximum for undergraduate study $23,000
Graduate and professional students $10,000/year
Total maximum subsidized & and unsubsidized for all education $73,000
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