Unsubsidized Stafford Loan

The Federal Unsubsidized Stafford Loan is a student loan offered through the Federal Direct Loan program and is administered by the Department of Education.  In order for you to qualify for a Direct Unsubsidized Stafford loan, you must complete and submit the FAFSA, also known as the Free Application for Federal Student Aid, application.  The FAFSA takes your income, assets, family size, number of family members in post-secondary school, and the cost of attendance to determine if you are eligible to receive a Direct Unsubsidized Stafford Loan.  Students that qualify for an Unsubsidized Stafford Loan will receive an financial aid award letter from their schoolís financial aid office. 

The qualified student will receive an award letter from his or her post-secondary institution explaining the award amount for the Unsubsidized Stafford Loan.  Due to the Health Care and Education Reconciliation Act of 2010 that was passed by Congress and signed by President Obama, the FFEL program is no longer in existence and the Direct Loan program is the main source of Unsubsidized Stafford Loans.
Students that apply for the Federal Direct Unsubsidized Stafford Loan do not have to demonstrate financial need.  This is a loan that students can borrower regardless of the familyís financial status.  The post-secondary institution will deduct the total amount of a studentís financial aid from their cost of attendance to determine whether he or she is eligible for an Unsubsidized Stafford Loan.

Students are responsible for the student loan interest from the time the unsubsidized loan is dispersed until it is paid off.  Students have the option to pay the interest or allow it to accrue or accumulate and just added to the principle.  Students must be aware that if they do choose to accrue their interest then they will have a larger student loan amount. 
The Unsubsidized Stafford Loan limits are as follows:

If you're a dependent undergraduate student, each year you can borrow up to:

+   $5,500 if you're a first-year student enrolled in a program of study that is at least a full academic year.

+  
$6,500 if you've completed your first year of study and the remainder of your program is at least a full academic year.

+  
$7,500 if you've completed two years of study and the remainder of your program is at least a full academic year.

If youíre an independent undergraduate student, each year you 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.

+  
$10,500 if you've completed your first year of study and the remainder of your program is at least a full academic year.

+   $12,500 if you've completed two years of study and the remainder of your program is at least a full academic year.

If you're a graduate or professional degree student, each year you can borrow up to $20,500 per year.
The Direct Unsubsidized Stafford Loan offered very competitive interest rates and favorable repayment terms.  Students interested in a student loan should consider a Federal Student Loan before searching for a private student loan from a financial institution.




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