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Affordable Stafford Loan
For undergraduate and graduate studentsThe federal government backs loans for both undergraduate and graduate students who are enrolled at least part-time in a degree program at an eligible school. Most students qualify for Federal Stafford Loans and there are no credit-check or co-signer requirements. Financial Aid Award Letters that a school sends typically include the dollar amount for federal loan eligibility. The table below lists federal loan limits and annual interest rate information.
Interest Rate and Fees
- 1.00% origination fee charged by the federal government.1
- 0-1.00% default (guarantee) fee depending on guarantor chosen by the school.
- Fixed interest rate of 6.80%.2
Features and Benefits
- 0.25% interest rate reduction for automatic payment deduction from any bank account.
- Unsubsidized program is open to all students regardless of financial need.
- On a $10,000 Affordable Stafford Loan, the savings represent $201.96 or more for subsidized loan borrowers and $251.90 or more for unsubsidized loan borrowers.3
Borrowing Limits
Annual:
Dependent Students [Definition]
- 1st Year: $5,500 (subsidized and unsubsidized) [Definitions]
- 2nd Year: $6,500 (subsidized and unsubsidized)
- 3rd, 4th, & 5th Years: $7,500 (subsidized and unsubsidized)
Independent Students
- 1st Year: $9,500 (subsidized: $3,500 and unsubsidized: $6,000)
- 2nd Year: $10,500 (subsidized: $4,500 and unsubsidized: $6,000)
- 3rd, 4th, & 5th Years: $12,500 (subsidized: $5,500 and unsubsidized: $7,000)
Graduate Students
- Up to $20,500 (subsidized: $8,500 and unsubsidized: $12,000)
Aggregate:
- Dependent undergraduate students: $31,000
- Independent undergraduate students: $57,500
- Graduate/Professional Student: $138,500
- Some Health Professions Students (check with your school): $189,125
Eligibility
- Have a high school diploma, GED or have passed a similar independent test approved by the Department of Education.
- Be a U.S. Citizen or eligible non-citizen.
- Be enrolled with the Selective Service (if you are male, aged 18-25).
- Be enrolled at least half-time as a regular student in an accredited institution.4
Disbursement
- Payable to the student and the school.
Repayment
- Repayment is deferred until 6 months after the student graduates, drops below half-time status or withdraws from school.
- Borrowers can choose to make interest only payments while in school.
- Standard 10-year repayment is what you agree to upon signing your Master Promissory Note. It means one level payment to make monthly.
- Other repayment options include Graduated repayment and Income Sensitive repayment.
How to Apply
Before you apply for the Stafford Loan, you must fill out a Free Application for Federal Student Aid (FAFSA). This is a Federal document that can be completed online at http://www.fafsa.ed.gov/.
Then fill out an application for the Stafford Loan.
If you have questions, or want to receive a paper application, Email us at educationfinance@charteronebank.com or call our Education Finance Specialists at 1-800-721-3969.
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| To contact us or apply: |
Email us
or call 1-800-721-3969
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All accounts are subject to individual credit approval.
1 Effective July 1, 2008 – June 30, 2009 a 1.00% origination fee is charged by the federal government and a 1.00% default (guarantee) fee may be charged by the guarantor on the Affordable Stafford Loan. Please note, the origination fee is 1.50% between June 1, 2008 and July 1, 2008.
2 Currently both subsidized and unsubsidized Stafford Loans have a fixed interest rate of 6.80%. Beginning July 1, 2008 the fixed rate for subsidized Stafford Loans for undergraduate students will be 6.00%. Unsubsidized Stafford Loans will remain at 6.80%. Subsidized Stafford Loans are offered to students with a demonstrated financial need.
3 Total savings calculation assumes 120 months loan repayment terms, continuous on time payments for full term of loan, use of ACH beginning with first payment and that the borrower will remain eligible for all benefits for full term. The calculations set forth above are examples only and may not be indicative of an individual borrower's potential savings. Actual savings may vary based on borrower payment habits, such as failing to make payments on time or failing to have funds in an account designated for ACH.
4 Qualified student must be attending school in any of the following states: Connecticut, Delaware, Illinois, Indiana, Massachusetts, Maine, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island or Vermont.
Charter One reserves the right to modify or discontinue these benefits at any time. Changes to these benefits, if any, will affect only loans disbursed after the changes occur.
The lender for the above-mentioned Charter One loan program(s) is RBS Citizens, N.A., Member FDIC and Equal Opportunity Lender. RBS Citizens, N.A. may sell your student loan to a third party. RBS Citizens, N.A. will only sell your student loan if the third party agrees to honor all of RBS Citizens, N.A.'s promises to you, including all promised benefits that you will receive or might become eligible for during the loan repayment period.
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