Stafford loans are for undergraduate, graduate, and health professional students who want a low-cost loan backed by the federal government. You must be a U.S. citizen or permanent resident to qualify for a Bank of America Stafford loan.
What kinds of Stafford loans are available to me?
There are two types of Stafford student loans that are granted based upon your financial status. Both allow you to defer payments of interest or principal and interest on your loan until 6 months after you graduate or if you drop below half-time enrollment status.
Subsidized Stafford loan
You remain eligible for a subsidized Stafford loan if you are in school at least half-time and can prove financial need. While you’re enrolled, the federal government will pay the interest on your Stafford loan.
Unsubsidized Stafford loans are for students who are unable to prove financial need. With an unsubsidized Stafford loan, you won't have to pass a credit check and your interest starts accruing as soon as it is disbursed to you.
You are considered an independent undergraduate student if you are either 24 years or older, married, a military veteran, on active military duty, an orphan or ward of the court, or have legal dependents other than a spouse (e.g. if you have children).
Graduate and professional students also qualify as independent students.
Up to $9,500 for your 1st year (at least $6,000 must be in unsubsidized loan)
Up to $10,500 for your 2nd year (at least $6,000 must be in unsubsidized loan)
Up to $12,500 for your 3rd & remaining years (at least $7,000 must be in unsubsidized loan)
Health Professional students are graduate students enrolled at least half time at an eligible, U.S.-based school in the following medical disciplines: Allopathic, Osteopathic, Dentistry, Optometry, Podiatric, Veterinary and Chiropractic
The annual loan limits are up to $8,500 for subsidized loans and up to $32,000 for unsubsidized loans
Yes, there is a maximum combined sum of all your Stafford loans2:
$31,000 as a dependent undergraduate student (no more than $23,000 of this amount may be in subsidized loans)
$57,500 as an independent undergraduate student (no more than $23,000 of this amount may be in subsidized loans)
$138,500 as graduate or professional student; the graduate debt limit includes any Stafford loans received for undergraduate study (no more than $65,500 of this amount may be in subsidized loans)
$189,125 as a health professional student. Depending on program, length of program or institution, additional funding may be available. Please contact your financial aid office for more information.
What will my Bank of America Stafford loan interest rate be?
You will have a fixed interest rate on your Stafford loan as set by the federal government.
Subsidized Stafford loans for undergraduate students have a fixed interest rate.
July 1, 2009-June 30, 2010 the interest rate is 5.6%.
July 1, 2010-June 30, 2011 the interest rate is 4.5%.
July 1, 2011-June 30, 2012 the interest rate is 3.4%.
Beginning July 1, 2012 the rate is 6.8%.
The interest rate on subsidized Stafford loans for graduate and professional students and on unsubsidized Stafford loans is 6.8%.
When can I expect to receive my loan?
Stafford student loan funds are disbursed in two or more payments on the dates requested by your school. For more information on disbursement dates, check with your school’s financial aid department.
What do I need to know about repayment of my loan?
You may be able to extend your repayment period for up to 30 years with alternative repayment plans
Your repayment term is 10 years (with a $50 minimum monthly payment)
What else do I need to know?
For loans first disbursed on or after July 1, 2009 but before July 1, 2010 the origination fee will be reduced to 0.5%. In addition, unless the guarantor waives your default fee, a 1% default fee will be deducted from your loan.
