Unsubsidized Stafford Loan
Eligibility: 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.
Amounts: 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.
Application: Students 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 Federal Government. Eligibility is not based on credit history.
Fees: 0.5% of the amount borrowed before July 1, 2012. Loans disbursed after July 1,2012 have a 1% of the amount borrowed fee.
Interest Rate: Loans disbursed on or after July 1, 2006 will have a fixed interest rate of 6.8%. Interest accrues but is not capitalized onto the principal of the loan until the student enters repayment.
Grace Period: 6 month grace period from the day the student graduates or drops below half-time enrollment.
Deferment: Unsubsidized Stafford Loans are deferred while the student is in-school. There are additional deferment and forbearance options available.
Repayment: Standard repayment period is 10* years. Repayment begins six months after leaving school or dropping below half-time status. Various repayment plans are available which can extend the length of the repayment period. The minimum monthly payment is $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.