The Federal Stafford Loan program provides loans for eligible students to assist in meeting their educational expenses. To apply for a Stafford Loan, a student must:

• complete the FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA), indicating interest in loans on Question 31.
  
  
• Students must also complete a Master Promissory Note (MPN)

Information from the FAFSA determines the amount and type of Federal Stafford Loan eligibility; subsidized or unsubsidized. A "subsidized" loan means that the federal government pays the interest while the student is enrolled in school. An "unsubsidized" loan means that the student is responsible for paying the interest. The interest can be paid quarterly or the student can request that the interest be capitalized. The 2009-10 interest rate is at a fixed 5.6% for undergraduate subsidized Stafford Loan, 6.8% for unsubsidized and graduate Stafford Loans.  The maximum amounts that a student may be eligible to borrow are $3500 subsidized, $2000 unsubsidized for the first year of undergraduate study, $4500 subsidized, $2000 unsubsidized for the second year, $5500 subsidized, $2000 unsubsidized for the third and fourth years, and $8500 subsidized, $12,000 unsubsidized for each year of graduate study. The maximum subsidized aggregate amount for all undergraduate years is $23,000, and $65,500 for all undergraduate and graduate years combined.

 Independent students may be eligible to borrow additional loan funds through the Federal Stafford Unsubsidized program. Limits are $4000 for each of the first two years of undergraduate study, $5000 for each year of additional undergraduate study.

 Prior to disbursing the loan funds to the school for the student, the lending institution will deduct both an origination fee and a guarantee fee which can total up to 1.5%.  

Borrowers may choose any participating lender when borrowing through the federal loan programs. In order to assist students who would like guidance in selecting a lender, we have developed a list of recommended lenders. Our recommended lenders are guaranteed through AES/PHEAA. We encourage you to compare lenders and choose those whose repayment, services and benefits meet your need.

To access SRU's loan comparison information, click HERE.

If you choose not to borrow from an SRU recommended lender, you can find a list of all AES/PHEAA Keystone Best Lenders and a National Lender list at http://www.aessuccess.org. Once again, borrowers may choose any lender, even lenders not identified on the recommended lender list.