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College Loans > Federal Stafford Loans
Start with Federal Stafford Loans
- For Students
- Fixed interest rate of 6.8% or lower
- 0.25% Auto Debit Reward
Federal Stafford Loans
If grants, scholarships and savings are not enough to cover your cost of attending schoolAnnual cost of attending a specific school, including tuition, fees, room and board, books and supplies, transportation and personal expenses. This amount is determined by your school., loans can bridge the gap. We recommend starting with a Federal Stafford Loan before applying for a Federal Parent PLUS Loan or Certified Private Loan.
Why choose a Stafford Loan?
- Stafford loans are available to most students, and no credit checkLenders contact Credit Bureaus (Equifax, Experian, TransUnion) who have tracked your credit history (e.g. credit cards, loans) to determine whether you have been diligent in your repayment of debts. is required
- Stafford loans have lower interest rates than PLUS loans and have more repayment options than private loans
What are the loan terms?
- Fixed interest rates – 5.6% (subsidizedBased on financial need, the government agrees to cover the cost of the loan interest while the student is in school. loans) or 6.8% (unsubsidizedThe student, as opposed to the government, is fully responsible for paying the loan interest, though payment can be deferred until after graduation. loans)
- 0.5% federal origination fee
- 1% federal default fee (waived if paid by guarantor)
- Deferred payments – No payments due until 6 months after you graduate or enroll in school less than half-time
- Flexible repayment options – 10-year standard repayment term (may be extended up to 25 years)
- 0.25% Auto Debit Reward – 0.25% interest rate reduction during repayment, when payments are set up for automatic debit from a bank account
How much can you borrow?
- Annual loan limits depend on your year in school and whether you are dependent or independent
| Dependent College Student* |
Annual Loan Limit |
|---|---|
| 1st Year (Freshman) | $5,500 total (up to $3,500 subsidized) |
| 2nd Year (Sophomore) | $6,500 total (up to $4,500 subsidized) |
| 3rd Year (Junior) | $7,500 total (up to $5,500 subsidized) |
| 4th or 5th Year (Senior) | $7,500 total (up to $5,500 subsidized) |
You are dependent if you are under 24 years old, are not married, do not have dependents and are not a veteran
| Independent College Student |
Annual Loan Limit |
|---|---|
| 1st Year (Freshman) | $9,500 total (up to $3,500 subsidized) |
| 2nd Year (Sophomore) | $10,500 total (up to $4,500 subsidized) |
| 3rd Year (Junior) | $12,500 total (up to $5,500 subsidized) |
| 4th or 5th Year (Senior) | $12,500 total (up to $5,500 subsidized) |
* Dependent students whose parents do not qualify for a Federal Parent PLUS Loan may borrow up to the annual limit for independent students
You are independent if you are at least 24 years old, are married, have dependents or are a veteran
- We suggest borrowing up to your annual loan limit with a Federal Stafford Loan
- If you need more money, consider Federal Parent PLUS Loans or Certified Private Loans to cover any remaining costs
Who is eligible?
- Students who are US citizens or eligible non-citizens
Non-citizens Eligible for Federal Stafford Loans and Federal PLUS Loans:
- US permanent residents with an I-151, I-151C, or I-551 card
- Victims of human trafficking with a T visa (T-2, T-3, or T-4, etc.)
- Holders of an I-94 Arrived-Departure Record from US Citizenship & Immigration Services (USCIS) with any of the following designations: "Asylum Granted," "Conditional Entrant" (if issued before April 1, 1980), "Cuban-Haitian Entrant," "Status Pending," "Refugee," "Parolee" (if paroled in the US for at least 1 year with the intention to become a US citizen or permanent resident and evidence not in the US for temporary purposes)
- Recipients of Notice of Approval to Apply for Permanent Residence (I-171 or I-464)
- Holders of a student visa (F1 or F2) or exchange visitor visa (J1 or J2)
- Members of international organizations with G visas
Please refer to the Federal Student Aid Web site for the most current information:
http://studentaid.ed.gov/PORTALSWebApp/students/english/
aideligibility.jsp - Students who are enrolled at least half-time at an eligible schoolWe offer Federal loans at all schools that participate in the Federal Family Education Loan Program (FFELP) – participating schools will display Federal Stafford Loan as an option in the first step of our online application.
- No credit check and no cosigner required
How to Get a Federal Stafford Loan
In addition to completing a loan application with us, you must complete the Free Application for Federal Student Aid (FAFSAA form to be filled out annually by current and anticipating students (and their parents) in the US to determine eligibility for federal student aid (including Stafford and PLUS loans, Pell grants and work-study programs). In addition, many states and schools use information from the FAFSA to award nonfederal aid.) at fafsa.ed.gov each year.
Apply
In this step, we determine whether we can provide a Stafford loan to you
- We offer Stafford loans at all schools that participate in the Federal Family Education Loan Program (FFELP) – participating schools will display Federal Stafford Loan as an option in the first step of our online application
- Have your Social Security number, driver's license and two references ready
- Apply online and follow the instructions to complete your application, or call us at 1-877-728-3030 to apply by phone
Sign
In this step, you sign a Master Promissory Note (MPN) confirming that you want to receive a loan from us
- You can e-sign online or sign a paper MPNfor Federal Stafford Loans & Federal PLUS Loans – A single promissory note used for multiple loan requests and outlines the borrower’s rights and responsibilities. Borrowers who sign MPNs for federal loans can reapply for subsequent loans without signing additional MPNs each year.
- To e-sign, you will need your Federal Student Aid PIN (FSA PINThe 4-digit number issued by the U.S. Department of Education. You can use it to confirm your identify on U.S. Department of Education systems and to sign your Master Promissory Note.) – if you don't have a PIN, you can get one at pin.ed.gov
Returning customers: If you previously signed a Federal Stafford Loan MPN with us, in most cases you will not need to sign one again
Certify
In this step, your school confirms your eligibility and determines your final loan amount
- When we have your signed MPN, we will contact your school and request school certification
- To ensure successful and prompt school certification, you should:
- Complete the FAFSA at fafsa.ed.gov (your school will not certify your loan unless you complete the FAFSA)
- Check with your school's financial aid office for other requirements such as entrance counselingInformation (administered either online or in person) that outlines the borrower's responsibilities, gives tips and answers questions about borrowing. or the College Scholarship Service Profile (CSS ProfileAn application (much more detailed than the FAFSA) distributed by the College Board in the US allowing students to apply for financial aid. It gives members of the College Board a closer review of a student and family finances.) application
New customers: If you previously had a Stafford loan with another lender, you should inform your financial aid office that you want to change your lender to Discover Student Loans, Lender ID 831312 (Discover Bank)
Disburse
In this step, we fund your loan
- We fund your loan in installments according to the disbursement scheduleYour school notifies us when your loan installments should arrive. provided by your school
- We send the money directly to your school
- Your school applies the funds to your student account and forwards any remaining funds to you (for rent, books or other costs related to attending school)
©2010 Discover Bank, Member FDIC | Lender ID 831312
