The purpose of the Federal Family Education Loan Program (FFELP) Subsidized Stafford Loan is to provide low interest educational loans that enable a student to pay the cost of attendance at a public or private, non-profit college or university. The federal government pays the interest on these loans while a student is in school, during a grace period, and during authorized periods of deferment.

ELIGIBILITY REQUIREMENTS

	Must be a U.S. citizen or an eligible non-citizen
	Have completed a FAFSA and be eligible to receive federal financial aid
	Be enrolled at least half-time
	Meet the Satisfactory Academic Progress requirements of the institution you are attending

	First year undergraduate:	$3,500
	Second year undergraduate:	$4,500
	Third year and remaining undergraduate years:	$5,500
	Independent Graduate:	$8,500
	Aggregate Limit for undergraduate students: $23,000
	Aggregate Limit for graduate students: $65,500

TERMS OF THE SUBSIDIZED STAFFORD LOAN

A .05% origination fee is deducted from the proceeds of each loan disbursement. There are no guarantee or insurance premium fees. Loans that are first disbursed on or after July 1, 2009 will have a fixed annual (simple interest) rate of 5.6% for the life of the loan. The borrower is not responsible for the interest accruing while he/she is enrolled at least half-time, during the six-month grace period, and during certain authorized deferment periods. In most cases, interest is not capitalized and may be paid as it accrues.

Repayment of the loan begins six months after the student ceases to be enrolled at least half-time. The loan repayment schedule will require a minimum monthly payment of 50.00 or an amount required to repay the loan within 10 years, whichever is greater. Borrowers may be eligible for postponement or deferment, or various options regarding loan repayment under certain circumstances.

To obtain a Stafford Loan through the Hinson-Hazlewood College Student Loan Program, you must have an active or previous loan with the Texas Higher Education Coordinating Board.

For more information, review Coordinating Board Rules, Chapter 21, Subchapter C. and http://www.ed.gov/policy/highered/leg/hea98/index.html. You may also call our Loan Services department in Austin (512) 427-6340 or toll-free (outside Austin metro): 1-800-242-3062 or send an e-mail to Loan Services.

A person submitting misleading or fraudulent information to the Texas Higher Education Coordinating Board in an attempt to obtain financial aid is subject to criminal prosecution. Please contact the Fraud Hotline to report suspected fraud.