Federal Stafford Loans
Federal Stafford Loans are need-based loans provided directly to students through the Federal Direct Loan Program. The amount you can borrow each year depends on your grade level. The Federal Stafford Loan interest rate is fixed at 3.4% for loans with an award period beginning after July 1, 2012. In your first year, you can borrow up to $3,500; in your second year, up to $4,500; and in succeeding years, up to $5,500, with an additional $2,000 in Unsubsidized Stafford loan money. The combined Subsidized and Unsubsidized Stafford loan aggregate limit is $31,000.
The Stafford annual loan limit for a student enrolled in a graduate or professional program of study is $20,500.00 for each academic year, with subsidized loans comprising no more than $8,500.00 of the total amount borrowed for 2011-2012. For any period of study beginning after July 12, 2012, all Stafford loans for graduate and professional program students will be unsubsidized. A graduate or professional student's unpaid principal amount of Stafford loans (including all SLS and Direct Stafford loans received or any portion of an outstanding consolidation loan that fully repaid such loans) may not exceed $138,500. Subsidized Stafford loans may comprise no more than $65,000.00 of the total amount borrowed. If you qualify for the interest subsidy based on your need, the Federal government will pay the interest while you are in school until six months after your studies have ended. You must then begin repayment of principal and interest.
The Federal Government requires that in order to qualify for a Federal Stafford student loan, you must:
- be a U.S. citizen or Permanent Resident of the United States.
- be pursuing a degree in an accredited program in an eligible institution.
- be enrolled in that program half-time or more.
- not be in default on a prior federal loan.
- have no recent federal drug convictions.
- if male and born after 1959, have registered for the draft.
If you do not have sufficient need to qualify for a subsidized loan, you may qualify for an unsubsidized loan. You are responsible to pay the interest on this loan while you are in school and during the summer or having the interest capitalized. Repayment of principal and interest begins six months after your studies have ended. The interest rate for the Unsubsidized loan is fixed at 6.8%.
Students interested in Federal Stafford Loan funding must be enrolled at least half time (6 credits each semester for undergraduates and 4.5 credits each semester for graduate students).Loans usually disburse to your account on or about 10 days prior to the start of each term. Please note: disbursement may not occur if you have not completed all the requirements and/or submitted all the required documentation. Please check the loan disclosure statement from the Federal Direct Loan Program for more information. Students have the right to cancel all or part of the loan or disbursement prior to or after the funds have been disbursed to the university. Prior to the disbursement of the loan students should contact the Hofstra Student Financial Services Suite and request that the loan be canceled or reduced. After the loan has been disbursed to the university, students need to contact the Office of Student Financial Services and request that all or a portion of the loan funds be returned to their lender. You can contact the Office of Student Financial Services via E-mail or visit them in person in Memorial Hall on the second floor.
Important Note: If you are a first time borrower at Hofstra you must complete an entrance interview before your loan is processed. We recommend that you complete this requirement as soon as you decide that you want a loan to avoid delays in processing. You can follow this link to complete your entrance interview right now. Exit Interviews are required upon graduation, or when enrollment becomes less than one-half time at Hofstra.
| Credits Earned | Academic Level | Stafford Eligibility subsidized / unsubsidized |
Unsubsidized Stafford Eligibility |
|---|---|---|---|
| 0-29 | 1 | $3,500.00/$2,000 | $4,000.00* |
| 30-59 | 2 | $4,500.00/$2,000 | $4,000.00* |
| 60-89 | 3 | $5,500.00/$2,000 | $5,000.00* |
| 90+ undergraduate | 4 | $5,500.00/$2,000 | $5,000.00* |
| Graduate programs | ALL | $8,500.00 | $12,000.00 |
* Independent Undergraduate Students only. Dependent students and their parents may borrow through the Parent Loan for Undergraduate Students (PLUS) program to supplement the student Stafford eligibility. If a parent is denied PLUS loan funding, students may be eligible for additional unsubsidized funding. Federal Stafford subsidized loan eligibility may vary based on family contribution, cost of attendance and other factors.
Please note that Hofstra University is required to submit loan information to the National Student Loan Data System (NSLDS), and that information is accessible by guaranty agencies, lenders and institutions determined to be authorized users of the data system.
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