Stafford Loan Basics
Subsidized Stafford Loans
There are two types of Federal Stafford Loans, subsidized and unsubsidized. Subsidized Stafford Loans are given on the basis of financial need. Financial need is determined by subtracting the Estimated Family Contribution (EFC), provided from the FAFSA, from the cost of attendance. If your financial need is not fully met through other forms of aid (including grants and scholarships), you are eligible for Subsidized Stafford Loan funds up to the remaining amount of your financial need or up to the loan limits based on your grade level, whichever amount is lower. The Federal Government will pay interest on a Subsidized Stafford Loan while you are in school and during your six-month grace period.
Unsubsidized Stafford Loans
If you do not demonstrate financial need or if your need is fully met by other aid funds, and your full cost of attendance is not met by your other aid, you are eligible for a Federal Unsubsidized Stafford Loan. If you accept the Unsubsidized Stafford Loan interest will accrue while you are enrolled. You are not required to make payments on the loan as long as you remain enrolled at least half time.
Loan Limits effective 7/1/2008
| Freshmen | $5500 |
| Sophomores | $6500 |
| Juniors | $7500 |
| Seniors | $7500 |
| Graduate students | $20,500 |
| Veterinary students | $40,500 |
Independent students and students whose parents were denied for a PLUS loan are eligible for additional funding through the Federal Unsubsidized Stafford Loan program. Contact your Financial Aid Counselor for more information.
Interest Rates
Current interest rates on all Federal Stafford loans (FFELP and Direct loans) are fixed. Undergraduates receive different interest rates for subsidized and unsubsidized loans; rates for grad students are the same whether the loan is subsidized or unsubsidized. Interest on Stafford loans borrowed between July 1, 1998 and June 30, 2006 is variable and is adjusted annually on July 1.
| Academic Year | Rate on Subsidized loans for undergraduates | Rate on Unsubsidized loan and for grad students |
| 2008-09 | 6.0% |
6.8% |
| 2009-10 | 5.6% |
6.8% |
| 2010-11 | 4.5% |
6.8% |
| 2011-12 | 3.4% |
6.8% |
| 2012-13 | 6.8% |
6.8% |
How do I apply for a loan?
- Choose a lender.
- Complete the Master Promissory Note (MPN) and Loan Counseling.
- Receive your loan funds.
Selecting a lender is an important decision, and many students and parents have questions about how to choose a lender. NC State is prohibited by federal law from selecting a lender for you or recommending a specific lender for you to choose. We can, however, share with you a list of lenders you may wish to consider. Please visit our Choosing a Lender site for more detailed information about how to select a Stafford lender. Indicate your choice of lender on the NC State Institutional Financial Aid application. If you did not select a lender when completing the Institutional Financial Aid application, please contact your counselor to request a Stafford loan and notify us of your lender selection.
Once you've selected a lender and notified our office of your choice, we will award a Federal Stafford loan and certify that loan electronically with your chosen lender. If this is your first Stafford Loan, your lender will send you a Master Promissory Note (MPN). You will need to sign and return that completed MPN to your preferred lender before the loan will be approved. Before the first loan disbursement can be issued to you, you will also need to complete Entrance Loan Counseling if you are a first-time loan borrower.
After your lender has received your signed MPN and you have completed Entrance Loan Counseling, your loan will be scheduled for disbursement. If your loan is for the full academic year, your loan will be disbursed in two equal disbursements – one at the beginning of the fall semester and one at the beginning of the spring semester. Your loan funds will first offset any outstanding charges you owe the university for the semester, and after your charges are paid in full, a refund of any excess loan proceeds will be disbursed to you either by check or by direct deposit.
The National Student Loan Data System (NSLDS) is the US Department of Education's centralized resource for information about all federal student loans that you have borrowed. You can find information about all of your current and prior student loans, even those you may have borrowed at a prior college or university.
NC State University adheres to the Code of Conduct which was created by the UNC system regarding the university's relationship to lenders. The goal of the Office of Scholarships and Financial Aid is to provide students with information they need to make good decisions about borrowing, and to select the types of loan(s) and the lender(s) that offer the best terms for their particular needs.