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, but the interest is paid for by the government rather than the borrow while the student is enrolled in school. The ability to receive the Subsidized Stafford Loan is based on calculated need as determined by the FAFSA. The current interest rate is 4.29% and is valid until June 30, 2016.   

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 below.  “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 after the student completes his/her schooling.  The interest rate is determined by the federal government and is currently 4.29% for undergraduate students and 5.84% for graduate students.

The Department of Education charges a 1.073% origination fee for all Stafford Loans.

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 Entrance Counseling and a Master Promissory Note with the Department of Education at studentloans.gov. The link to complete these items is also available in myLipscomb under the Financial Aid Award Page. If you have any questions, please contact the Financial Aid Office at 615-966-1791.

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
Base Amount
Freshman $3,500 $2,000 (total $3500 + $2000)
Sophomore $4,500 $2,000 (total $4500 + $2000)



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

Senior $5,500 $2,000 (total $5500 + $2000)

*Dependent students whose parent has been denied a PLUS Loan are eligible for an additional $4,000 (freshman and sophomores) or $5,000 (juniors and seniors) in Unsubsidized Stafford Loans.

Independent Students

Independent Students and
Dependent Students whose parents
have been denied the Parent PLUS Loan
Base Amount
Base Amount
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 part or all of your Federal Stafford and/or Perkins Loans forgiven by the Department of Education if you meet certain criteria. Check these websites for more information, or contact the Department of Education.