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Federal Stafford Loan Program

There are two Stafford loan programs available for undergraduate student borrowers. The Subsidized Stafford Loan is a federal loan that must be repaid.  The ability to receive the Subsidized Stafford loan is based on calculated need as determined by the FAFSA. The interest rate is determined by the Federal government and is subject to change on July 1.  “Subsidized” means that the interest is paid by the government while the student is enrolled in school.

The Unsubsidized Stafford loan is also a federal loan that must be repaid.  If the student is not eligible for the Subsidized Stafford loan, as determined by the results of the FAFSA, the Unsubsidized Stafford loan will be used to meet the student’s borrowing eligibility as determined by the Federal Stafford loan limits listed above.  “Unsubsidized” means that interest will accrue while the student is enrolled in school. The student can choose to pay the interest while in school or defer the interest and have it added to the principal balance.  The interest rate is determined by the Federal government and is subject to change on July 1.  The interest rate for the 2012-2013 school year is 6.8% for both undergraduate and graduate students.

Note: Independent students may borrow at increased limits under the Unsubsidized Stafford loan program. Aggregate limits for dependent, independent, and graduate students vary. For more information please contact the Financial Aid Office.

First-Time Stafford Loan Borrowers at Lipscomb University are required to complete an Entrance Interview and Master Promissory Note with the Department of Education. The link to complete these items is available in myLipscomb under the Financial Aid Award.  If you have any questions, please contact the Financial Aid Office at 1-800-333-4358        .

To learn more about Federal Stafford Loans, along with repayment options, capitalized interest, and repayment calculations, click HERE.

 

Dependent Students

 

 Dependent Students
(except students whose
parents cannot borrow PLUS)

Base Amount
Sub/Unsub

(effective July 1, 2008)

Freshman

$3,500

$2,000 (total $3500 + $2000)

Sophomore

$4,500

$2,000 (total $4500 + $2000)

Junior

$5,500

$2,000 (total $5500 + $2000)

Senior

$5,500

$2,000 (total $5500 + $2000)

*For independent students or dependent students whose parent has been denied a PLUS loan.

 

Independent Students

 

Independent Students and
Dependent Students Whose Parents
Have been Denied the Parent PLUS loan

Base Amount
Sub/Unsub

(effective July 1, 2008)

Freshman

$3,500

$6,000

Sophomore

$4,500

$6,000

Junior

$5,500

$7,000

Senior

$5,500

$7,000

 

 

Loan Forgiveness Options for Teachers and Nurses

You may be eligible to have all or a part of your Federal Stafford and/or Perkins Loan forgiven by the Department of Education if you meet certain criteria.  Check out these websites for more information or contact the Department of Education.

Teachers:   http://studentaid.ed.gov/PORTALSWebApp/students/english/cancelstaff.jsp

Nurses:  http://bhpr.hrsa.gov/nursing/loanrepay.htm