Unsubsidized Stafford Loan
Who is eligible?
Students must be a U.S. Citizen or eligible non-citizen. Students with a F1 or F2 student visa, J1 or J2 exchange visitor visa or a G series visa are NOT eligible for federal aid.
How much do I qualify for?
Maximum annual loan amount is up to $40,500 for first and second year medical students* and $44,944 for third and fourth year Medical Students*. Cumulative aggregate limit of $224,000 for Stafford Subsidized and Unsubsidized loans. This includes any undergraduate or graduate borrowing from the Stafford loan program.
* These amounts are based on a 9 month academic year for First and Second year students and an 11 month academic year for Third and Fourth year students.
How do I Apply?
You must file the Free Application for Federal Student Aid (FAFSA) to determine eligibility for the loan. The Unsubsidized Stafford loan is a non-need based loan funded by The Department of Education. Eligibility is not based on credit history.
What is the interest rate?
On August 9, 2013, President Obama signed into law a reduction of the interest rates on Federal Student Loans. The Stafford loan interest rate for graduate/professional students was reduced from 6.8% to 5.41% for loans processed on or after July 1, 2013. Interest rates will be established each year for the Direct Unsubsidized for which the first disbursement is on or after July 1 through the following June 30. The rate will be the sum of a uniform "index rate" plus an "add-on" that varies depending on the type of loan and the borrower's level as a graduate/professional.
Are there fees associated with this loan?
Yes, for all Direct Unsubsidized Loans disbursed between July1, 2012 and June 30, 2013 the loan fee is 1%. For all Direct Unsubsidized loans disbursed after July1, 2013, there is a 1.051% loan fee. The loan fee will be proportionately deducted from each of the two loan disbursements by the lender. Here is an example of the new fee structure: for a loan amount of $40,500, each disbursed amount that the University receives on your behalf will be $20,037.
Is there a grace period?
The borrower has a 6 month grace period from the day the he/she graduates or drops below half-time enrollment.
Are there deferment options?
Unsubsidized Stafford Loans are deferred while the student is in-school. There are additional deferment and forbearance options available by visiting www.studetntaid.ed.gov.
What about repayment?
Standard repayment period is 10* years. However, borrowers have six (6) different repayment plans which can adjust your monthly payments and extend the length of the repayment period. Repayment begins six months after leaving school or dropping below half-time status The minimum monthly payment could be as low as $50**. There is no penalty for prepayment.
*Students who borrow more than $30,000 can extend the standard repayment term from 10 years up to 25 years without loan consolidation. For more information about repayment terms, click here
**Minimum repayment amounts are determined by the total amount borrowed by the student.
To view an overview of this loan and the other types of available loans, click Loan Overview.
We are here to assist you; should you have any questions, please do not hesitate to contact us.