Eligibility

• You must attend a school that participates in the federal Stafford loan program.
• You must be a U.S. citizen or permanent resident. 
• You must be enrolled or plan to enroll at least half time.
• You must have submitted a FAFSA.

Features

• The Stafford loan has money-saving benefits that can save you money in repayment.
• Flexible repayment options are available.
• No payments are required while you are in school.
• You can manage your account online 24/7.
• You get life-of-loan servicing from Sallie Mae.
• You get the convenience of combined billing for all of your Sallie Mae-serviced loans.

Loan terms

Loan limits

You may borrow up to $20,500 per year in Stafford loans with a lifetime maximum of $138,500.

Interest rate

The Stafford loan interest rate is fixed at 6.8%.

Fees

For loans first disbursed July 1, 2007–June 30, 2008: Up to 2.5% in fees that includes a 1.5% federal origination fee and a 1% federal default fee. For loans first disbursed July 1, 2008–June 30, 2009: Up to 2% fees that includes a 1% federal origination fee and 1% federal default fee. There are lenders and guarantors that work with Sallie Mae that pay all or a portion of these fees.

Repayment

• Standard repayment: You make both principal and interest payments each month throughout a 10-year repayment term. This plan has the lowest total loan cost.
• Graduated repayment: You make reduced payments in the early years of repayment and increased payments thereafter, while still paying off the loans within the maximum 10-year period. With graduated repayment, you have a higher total loan cost than with standard repayment.
• Income-sensitive repayment: Payments are a percentage of your gross income. You must reapply every year for this plan and payments are adjusted annually to reflect changes in income. With income-sensitive repayment, you generally have a higher total loan cost than with standard repayment.
• Extended repayment: If you have a high amount of student loan debt, you may be eligible for a 25-year repayment term and the choice of standard or graduated payments to keep payments affordable. With extended repayment, your total loan cost is higher than with standard repayment.

Legal

• Repayment for Stafford loans begins immediately following a six-month grace period after graduation, leaving school, or falling below half-time status.
• You are responsible for the interest on your unsubsidized Stafford loan while you are in school but you do not have to pay the interest during this time. Unpaid interest that is deferred until after graduation is capitalized (added to the loan principal) and you will therefore pay interest on a higher loan amount. Interest does not accrue on subsidized Stafford loans while you are in school, during grace, and during authorized deferment.
• LAWLOANS is a registered service mark of Sallie Mae, Inc.