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FFELP: Unsubsidized Stafford Loan Program Fact Sheet

The purpose of the Federal Family Education Loan Program (FFELP) Unsubsidized 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 borrower is responsible for interest that accrues while in school, during a grace period, or during authorized periods of deferment or forbearance.

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

You must not owe a refund (also called an "overpayment") on any federal grant program or be in default or delinquent on a previously obtained federal student loan.

ANNUAL LOAN AMOUNTS (Combination of subsidized and unsubsidized loans)

	First year undergraduate:	$9,500
	Second year undergraduate:	$10,500
	Third year and remaining undergraduate years:	$12,500
	Independent Graduate:	$20,500

	Aggregate Limit for undergraduate students, including subsidized amounts: $46,000
	Aggregate Limit for graduate students, including subsidized amounts: $138,500

TERMS OF THE UNSUBSIDIZED STAFFORD LOAN

A 1% 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, 2008 will have a fixed annual (simple interest) rate of 6.80% for the life of the loan. Interest accrues from the date the funds are issued until the loan(s) are paid in full. Interest is not capitalized at any time 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 call for 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 of 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/sec423.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.