Federal Stafford Loan

Federal Stafford Loans are part of the Federal Family Education Loan Program (FFELP) and are available to students regardless of demonstrated financial need.

As of July 1, 2006, Federal Stafford Loans for graduate and law students and unsubsidized Stafford Loans for undergraduate students carry a fixed 6.8% interest rate.

As of July 1, 2008, subsidized Stafford Loans for undergraduate students carry a fixed 6.0% interest rate.

Subsidized loans, awarded to students who demonstrate financial need, do not accrue interest during periods of at least half-time enrollment, the six-month grace period, and lender-approved deferments. Unsubsidized loans accrue interest beginning at the time the loan is disbursed. Interest may be paid during periods of enrollment or may be capitalized and added to the principal amount of the loan when the loan enters repayment.

If you have questions about existing Federal loans, you can review your student loan history through the National Student Loan Data System (NSLDS).

Loan Amounts

As of July 1, 2008, the maximum amount of Federal Stafford Loan funds that a student may borrow for an academic year is as follows.

Dependent Students Whose Parents Can Borrow Federal PLUS Loan

Dependent Students Whose Parent Cannot Borrow Federal PLUS Loan & All Independent Students

Choice of Lender

Federal Stafford Loans are funded by lenders that participate in the Federal Family Education Loan Program (FFELP). Borrowers have the right and ability to choose any lender who offers a Federal Stafford Loan. Please feel free to view Lewis & Clark's guide to choosing a lender.

Fees and Disbursements

As of July 1, 2008, Federal Stafford Loans are subject to a 1% origination fee and a 1% default fee. These fees may or may not be covered, depending on your choice of lender. You should always refer to your lender's website for the most updated information regarding their borrower benefits.

Federal Stafford Loan funds are divided evenly over your academic year. All proceeds are forwarded to Lewis & Clark College. We will notify you when loan funds have been received.

Processing

First-Time Stafford Loan Borrowers will need to complete an online loan counseling session called the Entrance Interview, choose a lender, submit a Stafford Loan Request Form, and sign a Master Promissory Note (MPN) with their lender.

Continuing Borrowers only need to submit a Stafford Loan Request Form. It is recommended that Continuing Borrowers remain with the same lender they have used in previous years at Lewis & Clark to ensure continuity in repayment.

All loan requests must be received, certified, and processed while you are enrolled and attending classes at least half-time at Lewis & Clark.

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Estimating your monthly loan payments

The minimum monthly payment is $50 and the maximum repayment period is 10 years. Lenders are required to offer options of standard, graduated, or income-sensitive repayments to new borrowers as long as minimum annual payments and maximum time periods are met. However, extended repayment plans (up to 25 years) are available for borrowers with FFELP debt exceeding $30,000. In addition, provisions are made for certain deferment and forbearance options. Contact your lender for specific information on deferment and forbearance.

The following table is based on a standard 10 year repayment plan. Use this table to estimate the monthly payment amount for your Federal Stafford Loan(s).