Federal Stafford Loans

Federal Stafford Loans are federally guaranteed, low interest rate loans that are available to eligible students as determined by the FAFSA. Because the loans are guaranteed, application for the loan is not based on credit history or income.

Loan repayment begins after you graduate or drop below half-time status. Your loan servicer offers several repayment options.

The Federal Stafford Subsidized Loan

• Based on need, as determined by the information provided on the FAFSA.
• Interest is not charged while you are in school, during the grace period and during authorized periods of deferment.
• You must be enrolled at least half time (6 hours) to qualify.
• Repayment begins six months after you drop below six hours of enrollment.  The six months is known as your grace period.
• Fixed interest rate.
• Requires entrance counseling prior to the first disbursement of funds to the student’s account.

The Federal Stafford Unsubsidized Loan

• Not based on need.
• Interest begins accumulating at time of disbursement.
• Fixed interest rate.
• Students can pay interest while in school. If you defer payments, the interest will be capitalized. 
• Repayment begins six months after you are no longer enrolled at least half time.  The six months is known as your grace period.
• Requires entrance counseling prior to the first disbursement of funds to the student’s account.

Loan Limits

Professional degree students may be eligible to borrow up to $20,500 per academic year. Only $8,500 of this amount may be subsidized. Loan amounts may be reduced if you receive other assistance i.e. scholarships, tuition, waivers.

The total Federal Stafford Loan limit for professional degree students is $138,500 (only $65,500 of this amount may be subsidized). The total loan limit includes Federal Stafford Loans borrowed as an undergraduate and/or graduate student.

Exit Interview

If you graduate or drop below half-time, you must complete a Federal Stafford Loan Exit Interview.

 

Direct Stafford Loan Process

1. Accept, decline and /or reduce your Federal Direct Stafford Loan online through Self-Serve.
    
2. Complete your Direct Loan Master Promissory Note (MPN) (if you have not completed one at The University of Toledo in the past 10 years) and your loan entrance counseling if needed.
    
3. Enroll and attend classes for at least 6 credit hours at the graduate level in a degree-seeking program (can not be provisional or special student status).