Federal Stafford Loans are subsidized and unsubsidized loans made by private lenders. Repayment begins six months after the student ceases to be enrolled at least half time. The minimum payment is $50 per month for a maximum of ten years.

The Master Promissory Note is a contract with your lender and is mandatory when borrowing from a Federal Stafford Loan.

The interest rate for new student loans (subsidized and unsubsidized loans) in repayment is 5.30%. During in-school, grace, and deferment periods, the rate is 4.70%. The interest rate is variable and the current rate for all new Stafford Loans is 6.80%. The rate formula - 91 day t-bill + 3.1% - remains in effect for the life of the loan and the variable interest rate is calculated annually.

Interest rates for Stafford loans are capped at 8.5%.

Subsidized Stafford Loan
Subsidized means that interest (which accrues on a loan while a borrower is in school, grace, or authorized periods of deferment), is paid by the government. Students do not have to make principal or interest payments while enrolled in an eligible academic program for at least half time (six credit hours).

Unsubsidized Stafford Loan
Unsubsidized means that the borrower is fully responsible for paying the interest that accrues on the loan. Interest on an unsubsidized loan accrues from the date of disbursement and continues throughout the life of the loan. Students do not have to make principal payments but ARE responsible for accrued interest while enrolled in an eligible academic program for at least half-time (six credit hours). Interest payments may be deferred until the student is in repayment.

Deferment
A deferment means you may postpone making payments on your loan under specific conditions.

Loan Limits
Review the chart below for annual and aggregate limits for the Federal Stafford Loan.

Loan Eligibility for Non-Degree Graduate Students
A non-degree graduate student may be eligible to borrow subsidized and unsubsidized Stafford Loans for 12 consecutive months provided the student has not reached their maximum aggregate borrowing level as an undergraduate student. Maximum aggregate amount for an independent undergraduate student is $46,000. To receive Federal Stafford Loan funds for 12 months as a non-degree graduate borrower, a student must remain registered in graduate-level classes for a minimum of six credit hours during three consecutive semesters.

While attending as a non-degree graduate student, the maximum borrowing levels for one academic year is $5,500 subsidized and $5,000 unsubsidized Stafford Loans.

To process a loan, the Financial Aid Office will request verification that the course work is required for admission to a graduate program at Cleveland State. A non-degree graduate student must complete the non-degree graduate status verification form prior to each semester included in the loan period. This form is available in the Financial Aid Office and will also be mailed to non-degree graduate students who have completed their FAFSA and have been admitted to Cleveland State.

Below you will find examples of loan eligibility based on the 12 consecutive months rule: