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.

Borrowing Limits

Additional unsubsidized Stafford loan limits applicable to undergraduate students are increased for loans first disbursed on or after July 1, 2008. Subsidized limits (up to base amount) are unchanged. For students enrolled as regular students ineligible programs, annual Stafford loan limits are as follows:

Dependent Students (Except Students Whose Parents Cannot Borrow PLUS)	Base Amount	Additional Unsubsidized Loan Amount
		Prior to July 1, 2008	Effective July 1, 2008
Freshman	$3,500	$0	$2,000
Sophomore	$4,500	$0	$2,000
Junior or Senior	$5,500	$0	$2,000

Independent Undergraduate Students and Dependent Students Whose Parents Cannot Borrow a PLUS Loan	Base Amount	Additional Unsubsidized Loan Amounts
		Prior to July 1, 2008	Effective July 1, 2008
Freshman	$3,500	$4,000	$6,000
Sophomore	$4,500	$4,000	$6,000
Junior or Senior	$5,500	$5,000	$7,000

Graduate and Professional Students	Base Amount	Additional Unsubsidized Loan Amount
	$8,500	Unchanged at $12,500

Interest Rates

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

Interest Rate Reductions

Over a four-year period beginning July 1, 2008, the interest rate on subsidized Stafford Loans made to undergraduate students will be reduced. The applicable interest rates for loans made during this period are as follows:

First disbursement of a loan:		Interest rate on the unpaid balance
Made on or after	And made before
July 1, 2008	July 1, 2009	6.0 percent
July 1, 2009	July 1, 2010	5.6 percent
July 1, 2010	July 1, 2011	4.5 percent
July 1, 2011	July 1, 2012	3.4 percent

These changes apply to subsidized Stafford loans first disbursed on or after July 1 of each year through June 30 of the next year. This change does not affect any prior loans made to borrowers; the terms and interest rates of those loans remain the same. These reduced interest rates apply only to subsidized loans; any unsubsidized Stafford Loan for the same undergraduate borrower would continue to be made at the current fixed interest rate of 6.8 percent.

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 for disbursement to the student account. If sent as a check, co-payable to the borrower and Columbia University, the check must be endorsed for deposit to the student’s account.

Suggested Lenders

Please see the Suggested Lenders section.

Other Lenders

Loan Comparison Resource