Columbia University Student Financial Services

A Federal Stafford Loan is a federally guaranteed loan and has two types:

1. Federal Stafford Subsidized Loan is awarded on the basis of financial need, as determined by the results from a FAFSA. The federal government pays interest on the loan until repayment begins.
2. Federal Stafford Unsubsidized Loan is not awarded on the basis of financial need. Interest is charged from the time the loan is disbursed until it is paid in full. Students have the option of paying this interest while in school or capitalizing the interest.

Students must complete a FAFSA before applying for a Federal Stafford Loan. Currently the interest rate is fixed at 6.8%. Repayment will begin six months after the student graduates or ceases to be registered for at least six credits. Loan funds are usually sent electronically to Columbia University for disbursement to the student account.

Eligibility

Any student who is registered at least half time is eligible to apply. You must be a U.S. citizen or eligible non-citizen who has satisfied all Selective Service Act requirements. In addition, you must not be in default or owe a repayment on any Title IV program, and must maintain satisfactory academic progress. You must also fulfill the school’s entrance and exit interview requirements.

Full Federal Eligibility Requirements

Credit Criteria

A credit check is not required for Federal Stafford Loans.

Annual Borrowing Limits

Graduate students can borrow up to $20,500 in subsidized and unsubsidized Federal Stafford loans combined. Up to $8,500 of this amount may be in a subsidized Federal Stafford loan.

For students in the College of Dental Medicine, the College of Physicians and Surgeons and the Mailman School of Public Health, additional eligibility may apply. Please consult the financial aid offices for these schools.

The figures above describe the limits for loans disbursed on or after July 1, 2007. Note that lower limits may apply to loans disbursed before July 1, 2007.

Aggregate Borrowing Limits

Graduate students have an aggregate borrowing limit of $138,500 for both programs combined. No more than $65,500 of this amount may be in subsidized loans. This maximum total graduate debt limit includes Stafford loans received for undergraduate study or previous graduate Stafford loans.

Interest Rates

For loans disbursed on or after July 1, 2007, the interest rate is fixed at 6.8%.

Repayment

The first payment is due following a 6-month grace period after you graduate or your enrollment drops to less than half time. Additional deferment periods (i.e., a time when you do not have to make payments) may be available under certain circumstances, such as additional study or financial hardship.

Monthly payments are calculated based on the amount owed at the start of repayment. Payments may be adjusted based on your income level. Additionally, some lenders offer repayment incentives such as a reduction in the interest rate for payments that are automatically deducted from a checking account or for a certain number of consecutive on-time payments counted from the first required payment. There is no penalty for prepayment. For more information contact the lender or your financial aid office.

Generally, the repayment period is 10 years. There are, however, various loan repayment and consolidation programs available, either through a lender or through the federal government, that may extend the period of time depending on the program or your circumstances. For more information on repayment, contact the lender or your financial aid office.

Fees

As of July 1, 2008, the federal government assesses an origination fee of 1.0% of the principal borrowed, and the guarantee agency assesses a Federal Default Fee of up to 1% principal borrowed. If charged, these fees are deducted before each disbursement.

Disbursement

Loan funds are usually sent electronically to Columbia University and disbursed to the student account. Paper checks must be endorsed at the Cashiering office:

Morningside

Student Financial Services

210 Kent Hall

Medical Center

Student Administrative Services

1-127 Black Building

Suggested Lenders

Please see the Suggested Lenders section.

Other Lenders

Loan Comparison Resource