What is a Stafford Loan?
Federal Stafford Subsidized loans carry a low-interest fixed rate of 5.6% effective July 1, 2009 for undergraduate students and 6.8% for graduate students. The interest rate is based on current Federal guidelines. Loan fees up to 1.5% may be deducted from your loans by the lender and/or guarantor at disbursement. All loan funds are disbursed in two equal amounts.
Subsidized Loans are need-based and determined by the cost of attendance minus your expected family contribution (EFC). The government pays the interest that accrues while you are enrolled at least half-time, in an authorized period of deferment or during your six-month grace period that starts when you graduate or drop below-half-time enrollment status.
Unsubsidized Loans are not need based and the interest rate is fixed at 6.8%. The student is responsible for the interest that accrues from the time the loan is disbursed until it is paid in full. The student can choose to pay the interest as it accrues or let it capitalize. If you let the interest capitalize it will be added to the loan amount. At repayment, interest will be calculated on the amount of the loan plus the accrued interest.
| Year | Dependent | Independent | |||
|---|---|---|---|---|---|
| Subsidized or Unsubsidized | Additional Unsubsidized | Subsidized or Unsubsidized | Additional Unsubsidized | ||
| Year 1 | $3,500 | $2,000 | $3,500 | $6,000 | |
| Year 2 | $4,500 | $2,000 | $4,500 | $6,000 | |
| Year 3, 4, 5 | $5,500 | $2,000 | $5,500 | $7,000 | |
| Aggregate Limit | $31,000 | $57,500 | |||
| Graduate/ Professional |
N/A | N/A | $8,500 | $12,000 | |
| Aggregate Limit | $138,500 | ||||
Loan Interest Rates
Loans First Disbursed on or After July 1, 2006
| Loan Type | Grade Level | Program | |||
| Direct Loans | FFEL | ||||
| 7/1/2006 to 6/30/2008 |
7/1/2008 to 6/30/2009 |
7/1/2006 to 6/30/2008 |
7/1/2008 to 6/30/2009 |
||
| Subsidized Loans | Undergraduate | 6.80 | 6.00 | 6.80 | 6.00 |
| Graduate | 6.80 | 6.80 | 6.80 | 6.80 | |
| Unsubsidized Loans |
Undergraduate | 6.80 | 6.80 | 6.80 | 6.80 |
| Graduate | 6.80 | 6.80 | 6.80 | 6.80 | |
| PLUS Loans | All | 7.90 | 7.90 | 8.50 | 8.50 |
Variable Rates for Loans First Disbursed Between July 1, 1998 and June 30, 2006
These rates were calculated based upon statutory formulas and equal the bond equivalent rate of the 91-day Treasury bills auctioned on May 27, 2008, plus certain statutory percentage add-ons. The 91-day Treasury bills were auctioned at 1.905 percent, rounded to 1.91 percent.
| Loan Type | Status | Program | |||
| Direct Loans | FFEL | ||||
| 7/1/2007 to 6/30/2008 |
7/1/2008 to 6/30/2009 |
7/1/2007 to 6/30/2008 |
7/1/2008 to 6/30/2009 |
||
| Subsidized Loans | Repayment or Forbearance |
7.22 | 4.21 | 7.22 | 4.21 |
| In-school, Grace, or Deferment | 6.62 | 3.61 | 6.62 | 3.61 | |
| Unsubsidized Loans |
Repayment or Forbearance |
7.22 | 4.21 | 7.22 | 4.21 |
| In-school, Grace, or Deferment | 6.62 | 3.61 | 6.62 | 3.61 | |
| PLUS Loans | All | 8.02 | 5.01 | 8.02 | 5.01 |
- Notes:
- Interest rates on Stafford and PLUS loans disbursed before July 1, 1998, are calculated using different statutory formulas, percentage add-ons, or both.
- Generally, interest rates on Consolidation Loans are fixed rates calculated based on the weighted average of the loans being consolidated rounded up to the next higher 1/8 percent, not to exceed 8.25%.
Washburn University
1700 SW College
Topeka, KS 66621
Phone: (785) 670-1151
Toll-Free: 800-524-8447
financialaid@washburn.edu
