The Federal Stafford Loan

General Information

Federal Stafford Loans are government sponsored low interest loans. You (the student) borrow these loans either directly through the Federal Government (Direct Loans) or through private lenders, such as banks, credit unions, or savings and loan associations that participate in the Federal Family Education Loan Program (FFELP). Boston College participates in the FFELP process, so your loan will be funded by a private lending institution. You are charged an Origination Fee of 1% and a Guarantee Fee of 1% unless these fees are waived or reduced by the lender or guarantor. Based on your federal financial aid eligibility, you may be awarded either a subsidized Stafford loan or an unsubsidized Stafford loan. Check your award notification through you Agora Portal to see which type of Stafford loan you are eligible for.

Annual Loan Limits

As a result of legislation passed in May 2008, undergraduate students are eligible to borrow up to an additional $2,000 in an Unsubsidized Stafford Loan. While Boston College wants to make this information available to all eligible participants, we by no means want to advocate unnecessary borrowing. We recommend a student only borrow what they need. For more information about these additional funds, contact the Office of Student Services at 800-294-0294 or send an email to studentservices@bc.edu.

Federal Stafford/Direct Annual Loan Limits

Effective for loans first disbursed on or after 7/1/2008

Subsidized Stafford Loans

The interest rate for subsidized undergraduate Federal Stafford loans disbursed between July 1, 2008, and June 30, 2009, is 6.0%. The interest rate for subsidized graduate Federal Stafford loans disbursed between July 1, 2008, and June 30, 2009, is 6.8%. The federal government pays the interest accruing on a subsidized Federal Stafford Loan while the student is enrolled at least half-time in a degree granting program. The loan enters repayment six months after the student ceases to be enrolled at least half-time, and interest begins to accrue at this point.

Unsubsidized Stafford Loans

The interest rate for all unsubsidized Stafford Loans disbursed between July 1, 2008, and June 30, 2009, is 6.8%. Interest accrual under the unsubsidized program begins at disbursement. No payments of interest or principal are due until after the six month grace period, but you may choose to pay the interest on unsubsidized Stafford loans as it accrues. Any unpaid interest will be added to the principal balance of the loan when it enters repayment.

To determine eligibility for a Federal Stafford Loan, you must apply for financial aid each year by submitting the FAFSA and all other required documentation.