Federal Stafford Loan Program
This program offers deferred, low-interest loans from banks and other lenders. The program includes both subsidized and unsubsidized loans. With the former, the government pays the interest on the loan while you are enrolled in school and for six months afterwards; with unsubsidized loans you are responsible for all interest payments starting the day a check is disbursed. To be eligible for either type of Stafford Loan, a Free Application for Federal Student Aid (FAFSA) must be filed, in addition to the master promissary note.

Maximum annual borrowing amounts on the subsidized and/or unsubsidized Stafford loans are $5,500 for dependent freshmen, $6,500 for dependent sophomores, and $7,500 for dependent juniors, seniors and fifth-year students. Independent undergraduates may borrow additional unsubsidized Stafford loans for a Stafford loan amount of $9500 for independent freshmen, $10,500 for independent sophomores and $12,500 for independent juniors, seniors and fifth-year students.

For graduate students, the maximum annual borrowing amounts on the subsidized and/or unsubsidized Stafford loans are $20,500.

Federal Plus Loan Program
This program offers additional loans for parents (Parent PLUS) to borrow on behalf of their dependent undergraduate students as well as for graduate students (Grad PLUS) to borrow in their own name. Parents do not need to file the FAFSA. Graduate students are required to file the FAFSA and apply for Stafford loans prior to receiving this loan.

US Department of Education website
For more information on federal financial aid, visit: www.ed.gov.