Federal Stafford Student Loans

Any student may borrow from the Federal Stafford Loan Program, regardless of his or her demonstrated need, as long as total aid resources received by the student do not exceed the cost of attendance. As of July 1, 2007, first-year students may borrow $3,500; sophomores, $4,500; and juniors and seniors, $5,500 annually. Interest, set annually and based on T-bill rates, is capped at 8.25 percent. Repayment of principal and interest may be deferred until after the student's education is completed. The interest rate for 2006-2007 is 6.8%. Rates are set by the federal government in June of each year.