Federal Stafford Loans are low interest loans that are borrowed through a bank or lender by the student. Both Subsidized and Unsubsidized Stafford Loans have a 6.8% fixed rate of interest. Repayment of the principal amount begins 6 months after the student graduates, leaves school, or drops to less than 6 credit hours per semester.
There are 2 types of Stafford Loans:
Students who want to borrow through the Federal Stafford Loan Program must be enrolled in at least 6 credit hours per semester and cannot exceed their loan limit for the academic year and their cumulative Stafford Loan limits. Independent students and dependent students whose parent is denied a PLUS loan may be eligible to borrow additional Unsubsidized Stafford loan amounts. The limit is determined by academic status and academic year. However, the annual maximum loan amount an undergraduate student may borrow must be prorated in certain situations:
Note: students who are concurrently enrolled in a class(s) that will go towards their NIU degree should follow the directions on the Concurrent Enrollment Information Sheet. This could increase your prorated loan amount if you qualify.
Proration is determined by:
Credit hours you are enrolled in program
Semester hours in an academic year (30)
Proration example for a senior who is enrolled in 6 credit hours for the fall semester who will be graduating in December:
Divide the number of credit hours you are enrolled in for the semester (6) by the total semester hours in a year (30) and multiply that number (0.2) by the yearly maximum amount of Subsidized/Unsubsidized Stafford Loan eligibility ($5500/$5000) for a senior. The calculated amount of $1100 is the prorated Subsidized Stafford Loan amount for the fall semester.
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| Prorated Loan Limits Credit Hours/Semester |
Prorated Subsidized Stafford Loan | Prorated Unsubsidized Stafford Loan (for Independent or PLUS Loan Denial Students) |
|---|---|---|
| 21/30 | $3850 | $3500 |
| 20/30 | $3667 | $3333 |
| 19/30 | $3483 | $3167 |
| 18/30 | $3300 | $3000 |
| 17/30 | $3117 | $2833 |
| 16/30 | $2933 | $2667 |
| 15/30 | $2750 | $2500 |
| 14/30 | $2567 | $2333 |
| 13/30 | $2383 | $2167 |
| 12/30 | $2200 | $2000 |
| 11/30 | $2017 | $1833 |
| 10/30 | $1833 | $1667 |
| 9/30 | $1650 | $1500 |
| 8/30 | $1467 | $1333 |
| 7/30 | $1283 | $1167 |
| 6/30 | $1100 | $1000 |
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| 2007-2008 Academic Year Loan Limits Prior to July 1, 2008 Academic Level |
Subsidized/ Unsubsidized Dependent and Independent | Additional Unsubsidized (for Independent Students or PLUS Loan Denial Students) |
Total |
|---|---|---|---|
| Freshman | $3500 | $4000 | $7500 |
| Sophomore | $4500 | $4000 | $8500 |
| Junior/Senior | $5500 | $5000 | $10,500 |
| Post Graduate | $5500 | $5000 | $10,500 |
| Eligible Student-At-Large & Post Graduate pursuing a teachers certification | $5500 | $7000 | $12,500 |
| Graduate and Professional | $8500 | $12,000 | $20,500 |
Cumulative Stafford Loan Limits Prior to July 1, 2008
Undergraduates:
Dependent Student $23,000 Subsidized
Independent Student $46,000 (combination of Subsidized and Unsubsidized)
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Graduates:
$65,500 Subsidized/$73,000 Unsubsidized
$138,500 (combination of Subsidized and Unsubsidized)
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| 2008-2009 and 2007-2008 Academic Year Loan Limits Effective July 1, 2008 Academic Level |
Subsidized/ Unsubsidized Dependent and Independent | Additional Unsubsidized for Dependent Students (except students whose parents cannot borrow PLUS) | Additional Unsubsidized for Independent Students & PLUS Denial Students) |
Total for Dependent Students (except students whose parents cannot borrow PLUS) | Total for Independent Undergraduates & PLUS Denial Students |
|---|---|---|---|---|---|
| Freshman | $3500 | $2000 | $6000 | $5500 | $9500 |
| Sophomore | $4500 | $2000 | $6000 | $6500 | $10,500 |
| Junior/Senior | $5500 | $2000 | $7000 | $7500 | $12,500 |
| Post Graduate | $5500 | $2000 | $7000 | $7500 | $12,500 |
| Eligible Student-At-Large & Post Graduate pursuing a teachers certification | $5500 | Unchanged | $7000 | $12,500 | $12,500 |
| Graduate and Professional | $8500 | Unchanged | $12,000 | $20,500 | $20,500 |
Cumulative Stafford Loan Limits Effective July 1, 2008
Undergraduates:
Dependent Student $31,000 (no more than $23,000 of which can be Subsidized)
Independent Student $57,500 (no more than $23,000 of which can be Subsidized )
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Graduates:
$65,500 Subsidized/$73,000 Unsubsidized
$138,500 (combination of Subsidized and Unsubsidized)
Get an estimate of monthly loan payments with the Loan Calculator from FinAid.