Subsidized vs. Unsubsidized Loans

Federal Direct Stafford Loans are low-interest loans for students to help pay for the cost of a student's college education. The lender is the U.S. Department of Education. There are two types of loans: Subsidized and Unsubsidized.

Subsidized Stafford Loan is a need based loan. The Federal Government pays the interest while enrolled in school. The Financial Aid Office will determine if you are eligible for this loan from information reported the on the FAFSA.

Unsubsidized Stafford Loan is a non-need based loan. The student is responsible for paying the interest while enrolled in school. You do have the option to defer the interest until graduation or separation from the institution for any reason. If you choose to defer your interest, it will accumulate and capitalize onto your principal. The Financial Aid Office will determine if you are eligible for this loan from the information reported on the FAFSA.

You may be awarded either loan or a combination of each loan. Loans are divided in half for each semester (Fall and Spring). The maximum amounts you may borrow are listed below:

Dependent Undergraduate Students

Freshman may borrow up to $3,500 per year plus an additional $2000 unsubsidized loan.

Sophomores may borrow up to $4,500 plus an additional $2000 unsubsidized loan.

Juniors and Seniors may borrow up to $5,500 plus an additional $2000 unsubsidized loan.

If you are considered an Independent student or if your parent (s) applied for a Federal Plus Loan and it is denied by the lender you will also be eligible for additional unsubsidized loans in the amounts listed below:

Freshman and Sophomore: $4,000

Junior and Senior: $5,000

Graduate Students:

Graduate students are awarded based upon information received from the FAFSA. The maximum amount a graduate student may be awarded for the academic year is $20,500 in an unsubsidized loan.

**Please note these amounts may vary, depending on any additional aid you may receive. You may only receive up to your cost of attendance or budget for the academic year.**

Interest Rates - Please follow the link low interest for up-to-date information.