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Subsidized Stafford Loans

Subsidized Stafford Loans are need-based loans. The federal government pays the interest on the loan while you are in school and for the first six months after you graduate or are not enrolled at least half time at a university.

The BYU-Hawaii Financial Aid Office will help you arrange a loan if you are eligible for one and you have indicated on your FAFSA that you are interested in loans as a means of paying for your education. You may also submit a Loan Request Form to the Financial Aid Office.

 

Eligibility
Your eligibility of a Subsidized Stafford Loan is determined by a variety of factors including: your financial need as determined by your FAFSA, the Cost of Attendance and the Expected Family Contribution, your class standing, how many credits you are enrolled for, and whether you are a dependent or independent student based on FAFSA criteria.

 

The expected family contribution (EFC) is a calculated number based on the information you report to the FAFSA. Fall/Winter Stafford loan calculations use a 9 month EFC to determine the amount of your loan. (COA-9 month EFC-any other aid=loan eligibility).  Fall separately uses a 5 month EFC, winter uses a 4month EFC. Spring/summer calculations us a 3 month EFC, with a 2 month EFC for Spring and 1 month for summer.

 

Below is a chart that lists the maximum amount of Subsidized Stafford Loans a student is eligible for each year.

 

SAMPLE CHART

Number of Completed Credits Stafford Loan Eligibility (2006-2007) Stafford Loan Eligibility (2007-2008)
Freshman (0-29 credits) $2,625 $3,500
Sophomore (30-59 credits) $3,500 $4,500
Junior (60-89 credits) $5,500 $5,500
Senior (90-192 credits) $5,500 $5,500

Also * See unsubsidized limits.

 

Repayment
You are required to begin paying back your loan six months after you graduate or are no longer enrolled at a university. However, it is recommended that you begin paying back your loans as soon as you can in order to avoid paying more money in interest. Click here to calculate the effect interest has on your repayment amount. 

 

Interest Rates & Fees
The interest rate of this loan is adjusted yearly on July 1st, and cannot exceed 8.25%. If the loan is a over two academic periods (fall/winter, etc) it will be disbursed in two equal disbursements, If it is a one period loan, it will be disbursed at one time.

Depending on the lender selected, an origination fee may be assessed; this fee is collected by the lender before the money is sent to the University.  The loan becomes payable six months after the student graduates or drops below half time.

 

Lenders
If you have previously had a Stafford Loan, we advise you to continue with the same lender in order to simplify the repayment process.

Disbursement Information

 

Last Updated: December 13, 2007