Stafford
The Federal Stafford Loan is a student loan that is available to graduate, undergraduate, and pharmacy students. Loan funds come directly from the U.S. government.
To Apply for the Stafford Loan
First, the student must complete the Free Application for Federal Student Aid (FAFSA) and meet the eligibility requirements. Then, the student must follow the steps below.
Returning Students
There are no steps required to renew Stafford loans for students who received Stafford loan funds at Notre Dame during the previous academic year.
New Students:
Go to studentloans.gov and log in using your FAFSA pin number, then:
Step 1: Choose the option Complete Entrance Counseling.
Step 2: Choose the option Complete Master Promissory Note (MPN).
Beginning July 31, 2012, if the steps listed above have not been completed within one month of awarding for 2012-13, we will assume you decline the loan and it will be cancelled.
Please have the following information in front of you prior to beginning the E-MPN process so that you don't have to exit before completing the E-MPN:
- Your PIN from the United States Department of Education. If you do not have a PIN you will be given the option of going to the PIN web site to obtain a PIN.
- Your permanent address and telephone number.
- Your e-mail address (optional). If you have an e-mail address we strongly suggest that you provide it so you will receive an e-mail confirmation of your E-MPN submission.
- Your full legal name and Social Security Number (you may wish to have your Social Security card in front of you).
- Your Driver's license number, if applicable (you may wish to have your Driver's license in front of you).
- Complete name, addresses, and telephone numbers of two references who have known you for at least three years. One reference should be a parent or legal guardian if available. The references must be two different people at different addresses within the United States.
Subsidized vs. Unsubsidized Stafford Loans
Your Stafford Loan award may be Subsidized, Unsubsidized or the combination of the two.
Subsidized Stafford
- Effective July 1, 2012, the subsidized Stafford loan is only available to undergraduate students. However, a graduate student whose 2012-13 loan period begins before July 1, 2012 may be eligible for a subsidized Stafford loan.
- The Subsidized Stafford Loan is awarded for the academic year and is based on your financial need, dependency status and academic grade level.
- Financial need is determined by your Cost of Attendance minus your Estimated Family Contribution (EFC) from the FAFSA and any other aid you will receive.
- The federal government subsidizes or pays the interest on the loan while you are enrolled at least half-time, in your six-month grace period or in an eligible period of deferment.
- Interest will be charged once you enter repayment.
Unsubsidized Stafford
- The Unsubsidized Stafford Loan is awarded based on your Cost of Attendance minus any other aid you will receive, your dependency status and your academic grade level.
- You are responsible for the interest on this loan from the time the loan is disbursed until it is paid in full. The federal government DOES NOT subsidize the interest on this loan.
- You may choose to defer the interest during enrollment and deferment periods, but it will be capitalized (added to the principal amount).
Interest Rates
For 2012-13, the interest rate on all Stafford loans (both subsidized and unsubsidized) for both undergraduate and graduate students is fixed at 6.8%. However, an undergraduate students whose 2012-13 loan period begins before July 1, 2012 would have an interest rate of 3.4% on a subsidized Stafford loan.
Fees
For 2012-13, all disbursements will occur on or after July 1, 2012. Effective July 1, 2012, a 1 percent origination fee will be charged by the U.S. Department of Education. There will be no rebate. For example, a $2,000 loan will have an origination fee of 1 percent ($20) deducted from the loan before it is disbursed. $1,980 will disburse to the school. The student borrows $2,000 and must repay $2,000.
Loan Limits for Each Year
For students enrolled as regular students in eligible programs, annual Stafford loan limits are as follows:
Dependent Undergraduate Students
| Base Amount (Sub/Unsub) | Additional Loan (Unsub) | Total | |
|---|---|---|---|
| Freshman | $3,500 | $2,000 | $5,500 |
| Sophomore | $4,500 | $2,000 | $6,500 |
| Junior | $5,500 | $2,000 | $7,500 |
| Senior | $5,500 | $2,000 | $7,500 |
Independent Undergraduate Students and Dependent Undergraduate Students Whose Parents Cannot Borrow PLUS
| Base Amount (Sub/Unsub) | Additional Loan (Unsub) | Total | |
|---|---|---|---|
| Freshman | $3,500 | $6,000 | $9,500 |
| Sophomore | $4,500 | $6,000 | $10,500 |
| Junior | $5,500 | $7,000 | $12,500 |
| Senior | $5,500 | $7,000 | $12,500 |
Graduate and Pharmacy Students
| Base Amount (Sub/Unsub)* | Additional Loan (Unsub) | Total | |
|---|---|---|---|
| Graduate Students (pursuing Master's or Ph.D degree, CASE program) | $8,500 | $12,000 | $20,500 |
| Graduate Students (pursuing teaching certification) | $5,500 | $7,000 | $12,500 |
| Pharmacy Students | $8,500 | $24,500 | $33,000 |
*Effective July 1, 2012 graduate and pharmacy students will no longer be eligible for subsidized Stafford loans. However, graduate and pharmacy students whose 2012-13 loan period begins before July 1, 2012 may be eligible for a subsidized Stafford loan.
Cumulative Total Loan Limits
Federal regulations set aggregate, or total, loan limits in addition to the annual loan limits. You cannot borrow more than the aggregate loan limit for all subsidized and unsubsidized loans at all schools.
Aggregate Loan Limits
Effective July 1, 2008
| Maximum Subsidized | Maximum Unsubsidized | |
|---|---|---|
| Dependent Undergraduates | $23,000 | $31,000 |
| Independent Undergraduates | $23,000 | $57,500 |
| Graduate/Professional Students | $65,500 | $138,500 |
| Certain Health Professional Students (ie Pharmacy) | $65,500 |
$224,000 |
More information about Federal Stafford Subsidized and Unsubsidized Loans.