Graduate students are eligible for Federal Unsubsidized Stafford Loans and may borrow up to $20,500 per academic year. Loan disbursements are split equally over the semesters in an academic year. For example, if you are planning to attend fall and spring semester, you will receive two loan disbursements: one for fall and one for spring. If you are attending fall, spring, and summer semesters you will receive three equal disbursements.
Unsubsidized Stafford Loans are awarded regardless of a student's demonstrated financial need. These loans accrue interest while you're in school and generate interest charges as soon as they are disbursed. The interest charges may be deferred during enrollment (at least half-time) and deferment periods, but they will be capitalized (added to the outstanding loan balance).
- no principle payment while in school
- capped interest rate of 8.25% (Note: Effective July 1, 2013 all new Graduate Stafford Loans are fixed at 5.41%)
- requires half-time enrollment
All Federal Stafford Loans may be subject to an origination (1.5%) and insurance fee of up to 2.5%, taken from the value of the loan at the time it is disbursed to the school. The loan amount listed above and on Financial Aid Award Notices represent the gross amount of the loan (amount before fees have been paid). The Higher Education Reconciliation Act will adjust Stafford Loan origination fees according to the chart below:
|For Loans Disbursed||Origination|
|07/01/08 to 06/30/09||1.0%|
|07/01/09 to 06/30/12||0.5%|
|07/01/12 to 03/01/13||1.0%|
|03/01/13 to 06/30/14||1.051%|
|12/01/13 to present||1.072%|
Loan repayment begins 6 months after the student graduates, leaves school, or drops below half-time enrollment. Repayment will initially be scheduled for fixed monthly payments over a 10 year period. Other repayment options are also available.
Applying for a Federal Stafford Loan
1. Complete the Free Application for Federal Student Aid (FAFSA)
2. Return your signed Financial Aid Award Notice to the Financial Aid Office (this will be mailed to you once the Financial Aid Office has received and processed your FAFSA) indicating the loans and amounts you are accepting. You may borrow the amount of your choosing up to the full amount offered on your Financial Aid Award Notice.
Students accepting a Federal Stafford Loan for the first time at Westminster College should also:
1. Complete online Federal Stafford Loan Entrance Counseling
2. Complete an online Master Promissory Note