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Federal Stafford Loans
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Stafford Loans are low-cost student loans that are backed by the federal government and are available to eligible students just like you. After searching for grants and scholarships, you should take out a Stafford Loan before considering a private student loan. The interest on Stafford Loans is generally lower, you will have a wide array of repayment options, and you can take advantage of money-saving borrower benefit programs in repayment.
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| Apply Now! |
If your school is not listed, please contact the
Fifth Third Education Hotline at 1-800-222-7192
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| Eligibility
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- You must have submitted a FAFSA.
- For subsidized Stafford loans, you must have financial need as determined by your school.
- You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen.
- You must be enrolled or plan to enroll at least half time.
- You must be accepted for enrollment or attend a school that participates in the Federal Family Education Loan Program.
- You must not be in default on any education loan or owe a refund on an education grant.
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| Borrower Benefit
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- 0.25 percentage point interest rate reduction for making payments using automatic debit.1
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| Features
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- Flexible repayment options are available.
- No payments are required while you are in school at least half time.
- You can manage your account online 24/7.
- There is no prepayment penalty.
- No credit check is required.
- Six-month grace period when no payments are required immediately following your graduation or dropping to less than half-time status.
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| Loan Terms
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Dependent
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Annual loan limit
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Freshman
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$5,500
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Sophomores
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$6,500
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Junior or senior
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$7,500
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| Independent
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Annual loan limit
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| Freshman
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$9,500
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| Sophomore
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$10,500
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| Junior or senior
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$12,500
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| Graduate or professional
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$20,500
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| Undergraduate dependent lifetime limit
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$31,000
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| Undergraduate independent lifetime limit
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$57,500
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| Graduate or professional lifetime limit**
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$138,500
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** Exceptions may apply to certain graduate students.
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| Interest rate
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| The interest rate on subsidized Stafford loans for undergraduate students that are first disbursed July 1, 2008—June 30, 2009 is 6%. For all subsidized Stafford loans for graduate and professional students, and for all unsubsidized Stafford loans for all students, the interest rate is fixed at 6.8%. For Stafford loans first disbursed beginning July 1, 2006, the interest rate is fixed at 6.8%.
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| Fees
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The borrower will pay the origination fee on Stafford Loans guaranteed May 3, 2008 through June 30, 2009. This fee is 1.5% for loans first disbursed through June 30, 2008 and 1% for loans first disbursed July 1, 2008 through June 30. 2009.
For loans guaranteed after June 30, 2008 the 1% federal default fee will be charged unless your guarantor pays it for you (please check with your financial aid office for eligibility).
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| Repayment
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- Standard repayment: The standard repayment plan offers the lowest overall cost. When you start repaying, your loans are automatically placed into this plan. Your monthly payment amount remains the same over the term of the loan.
Use Sallie Mae's monthly loan payment calculator to see how this plan might work for you.
- Graduated repayment: With graduated repayment, your monthly payments are lower at the beginning of repayment and increase over the term of the loan.
You can choose to make payments as low as interest-only for up to four years. Payments for the remaining term will then be higher.
- Income-sensitive repayment: Your payments are based on a percentage of your monthly income — from 4% to 25% — as long as you pay at least the interest that accrues every month.
- Extended repayment: Lower your monthly payment without the inconvenience of applying for a new loan. Plus you can prepay your loan(s) at any time without penalty. If you have more than $30,000 in federal student loans, this option may be the best choice for you.
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| Legal
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- Repayment begins immediately following a six-month grace period after you graduate, leave school, or fall below half-time status.
- You are responsible for all of the interest that accrues on your unsubsidized Stafford loan while you are in school, but you do not have to pay the interest during this time. Unpaid interest that is deferred until after graduation is capitalized (added to the loan principal) and you will therefore pay interest on a higher loan amount. The federal government pays the interest on subsidized Stafford loans while you are in school, during grace, and during authorized deferment.
- Fifth Third and Fifth Third Bank are registered service marks of Fifth Third Bancorp. Member FDIC. Upromise Loan Link and the Upromise logo are service marks or registered service marks of Upromise, Inc. Sallie Mae is a registered service mark and Manage Your Loans is a service mark of Sallie Mae, Inc. SLM Corporation and its subsidiaries, including Sallie Mae, Inc., are not sponsored by or agencies of the United States of America. © 2009 by Sallie Mae, Inc. All Rights Reserved.
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| More information |
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| To apply for a student loan, please call: |
| Fifth Third Education Hotline |
1-800-222-7192 |
| TDD/TTY |
1-800-535-4314 |
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| Questions regarding existing student loans, please call either: |
| Sallie Mae® |
1-888-272-5543 |
| Great Lakes Higher Education |
1-800-236-4300 |
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