Federal Stafford Loans
Lender Comparison:
2009-2010 Lender Comparison
Federal Family Education Loan Program (FFELP)
These loans require a completed and correct FAFSA and other requirements, but are not based on the student's credit history, unless the student has defaulted on another federal student loan, or owes money for an over-award on a federal grant. There are two types of FFELP loans available: subsidized and unsubsidized. The student must be making Satisfactory Academic Progress (SAP).
All first-time FFELP borrowers at Regent University are required to complete entrance counseling prior to disbursement of loan checks. In addition, all FFELP recipients must complete exit counseling prior to graduation, withdrawal from Regent, or otherwise ceasing to be enrolled on at least a half-time basis at Regent University. FFELP loans are made through private lenders. Disbursement of FFELP loans takes place at final registration. Loan proceeds must be split into two disbursements regardless of the length of the loan period. If a student withdraws from classes, a refund may be due the student.
Subsidized Stafford Loans
The Subsidized Stafford Loan is a low-cost plan to help pay educational costs. A graduate student may be eligible for up to $8,500 per academic year with the Federal Subsidized Stafford Loan and an undergraduate student may be eligible for up to $5,500. This amount is based on need. The federal government pays the interest on the loan while the student is enrolled at least half time or during periods of authorized deferment. You have a six-month grace period after graduation or otherwise becoming enrolled less than half-time, before entering the ten year repayment period.
Unsubsidized Stafford Loans
A graduate student may be eligible for up to $20,500 per academic year and an undergraduate student may be eligible for up to $12,500 per academic year with the Federal Unsubsidized Stafford Program. If the student is eligible for the maximum subsidized loan, the maximum unsubsidized loan is $12,000 for graduate students and $7,000 for undergraduates. Unsubsidized loans are not based on need and interest begins to accrue at disbursement with the option of deferring until repayment or making quarterly payments. The same rates and terms as the subsidized loan apply to the unsubsidized loan.
Interest Rates
The interest rates on your Stafford Subsidized and Unsubsidized loans are based on your grade level and the dates the loans were disbursed. All Stafford loans disbursed prior to July 1, 2006 have a variable rate that is adjusted annually. Click here to view the current variable interest rates.
Loans disbursed after July 1, 2006 have a FIXED interest rate based on your grade level.
| Loan Type | Grade Level | First Disbursed | Interest Rate |
| Stafford Subsidized Loan | Undergraduates |
7/1/2006 to 6/30/2008 |
6.8% |
7/1/2008 to 6/30/2009 |
6.0% |
||
7/1/2009 to 6/30/2009 |
5.6% |
||
| Stafford Unsubsidized Loan | Undergraduates |
7/1/2006 and beyond |
6.8% |
| Stafford Subsidized and Unsubsidized Loans | Graduate Students |
7/1/2006 and beyond |
6.8% |
Note: Subsidized and unsubsidized federal Stafford loans may be consolidated once you are in the repayment period. Consolidation may extend the length of your repayment period and lower your monthly payments, although the amount of interest paid over the life of the loan will increase. Consolidation may or may not be the best option for you. Contact your lender for more information.
| Annual Limits for Stafford Loans |
Subsidized | Total (Subsidized & Unsubsidized) |
| Dependent - Undergraduate Students | ||
| First Year (0 to 29 credits) | $3,500 | $5,500 |
| Second Year (30 to 59 credits) | $4,500 | $6,500 |
| Third Year & Beyond (60 + credits) | $5,500 | $7,500 |
| Independent - Undergraduate Students | ||
| First Year (0 to 29 credits) | $3,500 | $9,500 |
| Second Year (30 to 59 credits) | $4,500 | $10,500 |
| Third Year & Beyond (60 + credits) | $5,500 | $12,500 |
| Graduate & Professional Studies | $8,500 | $20,500 |
| Psy. D. Students | $8,500 | $37,167 |
Note: Loan Amounts effective Fall 2008.
| Aggregate Limits for Stafford Loans |
Subsidized |
Total (Subsidized & Unsubsidized) |
| Dependent - Undergraduates | $23,000 | $31,000 |
| Independent - Undergraduates | $23,000 | $57,500 |
| Graduate & Professional Students | $65,500 | $138,500 |
| Psy. D. Students | $65,500 | $224,000 |
LOAN ELIGIBILITY
In order to qualify to receive a student loan (Stafford or private), a student must be enrolled and attend classes/submit assignments on at least a half-time basis, regardless of stage of his/her program. Half time is defined as follows:
| Minimum number of credits for loans: | Fall | Spring | Summer |
| Undergraduate | 6 | 6 | 6 |
| GLE - Business & Leadership | 5 | 5 | 5 |
| Other Graduate Students | 5 | 5 | 3 |
| Doctoral Students | 3 | 3 | 3 |
If a student plans on dropping below these levels, he/she should contact Central Financial Aid before making any final decision or submitting paperwork. Your counselor will go over with you how dropping below half-time status will affect your loan situation.
The total loan amount a student is eligible for is based on the following formula:
Cost of attendance (COA) - Aid (scholarships, etc.) = Total Loan Eligibility
The following formula determines a student's eligibility for a Subsidized Loan:
COA - Expected Family Contribution (EFC) - Aid = Subsidized Loan Eligibility.
APPLYING FOR AID
Students are encouraged to begin the financial aid application process in conjunction with the required admissions application activity. Although a financial aid award cannot be made until a student is accepted, all necessary paperwork will be on file to expedite the awarding process upon acceptance. Students interested in borrowing a Federal Stafford Loan should complete the Free Application for Federal Student Aid (FAFSA) as soon after January 1st as possible or when previous year’s taxes are completed. Central Financial Aid suggests submitting the FAFSA by March 15th to ensure timely processing and arrival of funds for the Fall semester.
The FAFSA may be submitted one of two ways. The student may fill out the paper application or complete the FAFSA-on-the-Web. The location of FAFSA-on-the-Web is www.fafsa.ed.gov. Submitting the FAFSA online greatly reduces the processing time of the application and requires the submission of a signature page.
Early submission of applications helps to ensure the arrival of funds by the final payment deadline. It also allows for necessary information to be available when Central Financial Aid begins the awarding process.
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