Federal Stafford Student Loan Program
The Federal Stafford Student Loan Program consists of the Subsidized Stafford Loan and the Unsubsidized Stafford Loan. Applicants for the Stafford Loan program must first complete the Free Application for Federal Student Aid (FAFSA) at http://www.fafsa.ed.gov using our SUNY Fredonia Federal School Code of 002844 in order to release their FAFSA data to Fredonia.
A student must be registered for a minimum of 6 credit hours per semester to qualify, and must be either a U.S. citizen or permanent resident of the U.S. Upon receipt of the FAFSA data from the Federal Central Processor, the SUNY Fredonia Financial Aid Office determines loan eligibility, and the New York State Higher Education Services Corp. (NYSHESC) provides an online Master Promissory Note for first-time loan borrowers at www.hesc.com.
The primary differences between Subsidized and Unsubsidized Stafford Loans:
Subsidized: Interest is paid by the federal government during in-school, grace and deferment periods and is based on need.
Unsubsidized: Interest is paid by the student during in-school, grace and deferment periods and can be used to replace expected family contribution.
The Subsidized and Unsubsidized Stafford Loans are similar in the following ways:
- Fixed Interest Rate - contact the Financial Aid Office for current rates.
- Repayment on principal begins six months after enrollment drops below 6 credit hours per semester.
Annual maximums for Subsidized and Unsubsidized Stafford Loans combined are $20,500 for graduate students. The maximum amount that may be awarded to each student is $138,500 for undergraduate and graduate work combined.