A Stafford Loan is one of the direct loans that are offered through the Direct Loan Program.  There are two forms of Stafford Loans, which are the subsidized and the unsubsidized Stafford Loan.  The subsidized Stafford Loan amount is based on financial need and does not accrue interest when the student is attending a post-secondary institution.  The Unsubsidized Stafford loan is not based on financial need and students are able to receive this type of student loan if they feel they need additional money.  The unsubsidized Stafford loan starts to accrue interest when the money is dispersed to the student.  Your school will subtract the total amount of your other financial aid from your cost of attendance to determine whether a student is eligible for an unsubsidized loan.

Maximum Stafford Loan Amount:

Students can receive a subsidized loan and an unsubsidized loan for the same enrollment period as long as you don't exceed the annual loan limits. 

Dependent undergraduate students

• Students can borrow up to $5,500 if they’re a first-year student enrolled in a program of study that is at least a full academic year. No more than $3,500 of this amount can be in subsidized loans. 
• Students that have completed their first year of study and the remainder of their program is at least a full academic year are eligible to receive up to $6,500 and no more than $4,500 of this amount can be in subsidized loans. 
• Students that have completed two years of study and the remainder of the program is at least a full academic year are eligible to receive no more than $7,500 and no more than $5,500 of this amount can be in subsidized loans.

Independent undergraduate students

• Students can borrow up to $9,500 if you're a first-year student enrolled in a program of study that is at least a full academic year. No more than $3,500 of this amount may be in subsidized loans.
• Students that have completed their first year of study and the remainder of their program is at least a full academic year are eligible to receive up to $10,500 and no more than $4,500 of this amount may be in subsidized loans.
• Students that have completed two years of study and the remainder of the program is at least a full academic year are eligible to receive no more than $12,500 and no more than $5,500 of this amount may be in subsidized loans.

Stafford Loan Interest Rate

The Unsubsidized Stafford loan interest rate is fixed at 6.8 percent, while subsidized Stafford loans offer an interest rate of  5.6 percent.

Below is a breakdown of all interest rates based on the age of the student loan.