Stafford loans are student loans that are guaranteed or backed by the federal government. There are two types of Stafford loans, subsidized and unsubsidized.
Subsidized Stafford loans are awarded to students based on need. The federal government will pay the interest on this loan while the student is enrolled at least half-time, during the grace period, and during any authorized deferment periods.
Unsubsidized Stafford loans are not based on need, and the interest begins to accrue on this loan as soon as the funds are disbursed. A student can arrange to make interest only payments or allow the interest to accrue while in school, during the grace period, and during any authorized deferment periods.
Repayment of Stafford loans begins 6 months after the student graduates, withdraws, or drops below half-time enrollment status. Subsidized Stafford loans disbursed between July 1, 2008 and June 30, 2009 will have a fixed interest rate of 6.0%. Unsubsidized Stafford loans disbursed after July 1, 2008 will have a fixed interest rate of 6.8%. All Stafford loans disbursed between July 1, 2006 and June 30, 2008 will have a fixed rate of 6.8%. The variable interest rate will remain in effect for all Stafford loans prior to July 1, 2006. The interest rate for variable rate loans is adjusted each July 1 and has an interest rate cap of 8.5%.
The student must file the Free Application for Federal Student Aid (FAFSA) and list Bluffton University (FAFSA school code:003016).
For detailed instructions on the Stafford Loan application process please view our Stafford step-by-step Loan Guide.
It is recommended that all loan applications be completed by mid-June and no later than mid-July, in order for funds to be available at the beginning of fall semester.
If you have questions, contact the Financial Aid Office at Bluffton University:
by phone 419-358-3266 or
by email: loans@bluffton.edu
