How much stafford loan can i take

Lenders look at how much of your monthly income would be required to repay your loan, and all your other existing obligations your debt-to-income ratio. In addition to looking at your ability to repay, most private student lenders will have a maximum loan limit. But first, it might be a good idea to:. If you decide to take out a private student loan, be sure to consider as many lenders as possible to find the right loan for you.

Credible makes this easy — you can compare your rates from multiple lenders in two minutes. Enter your loan information to calculate how much you could pay. Need a student loan? Compare rates without affecting your credit score. The low borrowing limits and interest rates on the most affordable federal loans for undergrads mean that most borrowers who finish their degrees can repay them. Eligible students borrow directly from the U. Department of Education the Department at participating schools.

Stafford Loans are available for undergraduate and graduate students and come from Direct Stafford Loans made by the U. Department of Education. Direct Stafford Loans include the following types of loans:. If you are eligible for a subsidized Stafford loan you will not be charged interest while you are in school on an at least half-time basis, during a grace period of up to six months after you are no longer enrolled on at least a "half-time" basis, or during certain defined deferment periods.

The Federal government pays subsidizes the interest during these periods. An unsubsidized loan is not awarded on the basis of need. For unsubsidized loans, you will be charged interest from the time the loan is disbursed until it is paid off in full. However, you can choose to defer payment of interest while you are in school and during any grace or deferment period.

Students who don't qualify for a subsidized loan can still receive an unsubsidized loan but will accrue interest while they are still in school. However, they do not have to begin repaying the loan until after they graduate, and their six-month grace period has ended. The amounts of subsidized loans a student can receive are limited to the dependent maximums listed above.

The Federal Student Aid website maintains and regularly updates information about the current interest rates for federal student loans. It's important to check it occasionally because the rates charged will vary by loan and borrower type.

As an example, for loans with disbursement between July 1, , and July 1, , the rate for direct subsidized and unsubsidized undergraduate loans is 2. In addition to the interest paid on a Stafford loan, there is also a loan fee. For loans with a first disbursement date on or after October 1, , and before October 1, , the loan fee is 1. If on or after October 1, , and before October 1, , the fee is 1.

This fee is partially deducted from each disbursement check. Repayment of all Stafford Loans begins six months after a student either graduates, drops out, or drops below half-time status. During this six-month grace period, interest does not get added onto a subsidized loan but accrues for unsubsidized loan balances. Stafford Loans allow you to choose a repayment plan from the following options:. Once completed, the FAFSA form is forwarded to your school, who will then inform you of your loan eligibility and lender options.

When you accept the loan, you are required to sign a master promissory note before any funds can be disbursed. Federal Student Aid. Accessed May 10, The amount all students receive cannot exceed the total cost of their education less the amount of any other financial aid awarded. Contact a local recruiting officer for more information. There may also be other forms individual schools require, such as the new Financial Aid Profile application.

Financial aid advisors at the school you are attending or planning on attending can help you determine what forms to fill out. TIP…By law, you must be notified if the original lender sells your loan to another organization. Both companies should notify you of the sale and provide you with information about the new organization carrying your loan. After your financial aid package is complete and award amounts are determined, you will either receive a Stafford Loan application in the mail from your financial aid office or you will need to request one.

Most schools will automatically check your eligibility for a Pell Grant before announcing the appropriate Stafford Loan amount. If you do receive a Pell Grant, the amount of your Stafford Loan may be less. If this does happen, the school must present you with written documentation for its actions. Department of Education. Once the application for your Stafford Loan has been approved by the lender, the funds will automatically be transferred back to your school for disbursement.

Before receiving your loan money, you must sign a promissory note agreeing to pay back the entire amount you have borrowed. Typically, there is a small loan fee that is taken out of the loan before you receive the money.

The disbursement of loan money is either credited to your account by the school, or paid directly to you, or both. The number of payments you receive is based on your academic calendar. If you attend a school on the quarter system, you will usually be paid three times a year at the start of each quarter not including summer quarter. Schools that operate on a semester system pay their students twice a year, at the beginning of fall and spring terms.