Stafford Loans

Stafford Loans are federal educational loans for undergraduate and graduate students. The loan is either subsidized or unsubsidized and the interest rate is variable, based on the 91-day treasury bill rate plus 3.1% or 3.25%. The interest rate is capped at 8.25%. Dependent undergraduate students can borrow up to $31,000 (no more than $23,000 of this amount may be in subsidized loans), independent undergraduates can borrow up to $57,500 (no more than $23,000 of this amount may be subsidized loans) and graduate students can borrow up to $138,500, including any undergraduate Stafford Loans (no more than $65,500 of this amount may be in subsidized loans). Borrowers are charged a 3% origination fee and a 1% insurance fee, which is deducted from the loan before it is disbursed.