Federal Stafford Loans
Although Federal Stafford Loans are government-sponsored loan programs, students borrow funds directly from commercial banks and lenders and make payments to these lenders or their agents. Participating lenders must administer Stafford Loans according to federal regulations, which dictate interest rates and other loan terms. Stafford Loans may be either subsidized or unsubsidized by the federal government.
Federal Stafford and PLUS Loan interest rates for loans made on or after July 1, 1998 are set each July for loans disbursed after July 1st. The Stafford Loan in-school interest rate is derived by adding 1.7% to the 91-day Treasury bill. During repayment, 2.3% is added to the 91-day Treasury bill rate and is capped at 8.25%. Federal Stafford and PLUS Loan interest rates after July 1, 2006 have fixed rates.
Federal Subsidized Stafford Loans
You may borrow these funds if you demonstrate financial need as determined by the Office of Financial Aid in accordance with federal regulations. In general, this means your Expected Family Contribution (EFC) must be less than the Cost of Attendance at Cal State East Bay. The amount you may borrow depends on your need and your grade level. While you are in school at least half-time (6 units or more), no repayment is required during school or the six-month grace period. Repayment of loan principal and interest begins six months after enrollment falls below half-time, and is usually calculated over a maximum 10-year period. The current in-school interest rate paid by the government is fixed at 6.0%.
Federal Unsubsidized Stafford Loans
You may borrow this variable interest loan without demonstrating financial need. This loan is similar to the Federal Subsidized loan except borrowers are responsible for interest, which begins to accrue at disbursement. The interest rate is the same as the Subsidized Stafford Loan.
Limits and Repayment of Stafford Loans
While this loan may cover the entire Cost of Attendance, including your Expected Family Contribution (EFC), the amount you may borrow depends on your grade level. Borrowers are required to begin repayment of loan principal six months after enrollment falls below halftime, and repayment is calculated over a maximum 10-year period.
Stafford Loan Counseling Sessions
Before your Stafford Loan application is certified by the Financial Aid Office you must successfully complete an Online Stafford Loan Counseling session. Federal regulations require we inform student loan borrowers of their rights and responsibilities regarding their loan and explain the terms and conditions of the Stafford Loan program.
| Subsidized/Unsubsidized | Additional Unsubsidized 1 | |
|---|---|---|
| Freshman | $3,500 | $6,000 |
| Sophomore | $4,500 | $6,000 |
| Junior | $5,500 | $7,000 |
| Teacher Credential | $5,500 | $7,000 |
| Graduate Unclassified | $8,500 | $12,000 |
| Post-baccalaureate2 | $5,500 | $7,000 |
1 Independent students only (not required to submit parent information on FAFSA
2 Unclassified post-baccalaureate students, taking prerequisite coursework required for admission into a master's or other degree program, may only borrow for 12 consecutive months.
| Class Level | Loan Amount |
|---|---|
| Dependent Undergraduates | $31,000 |
| Independent Undergraduates | $57,500 |
| 2nd Bachelor's Dependent | $31,000 |
| 2nd Bachelor's Independent | $57,500 |
| Teacher Credential Dependent | $31,000 |
| Teacher Credential Independent | $57,500 |
| Post-Baccalaureate Unclassified Dependent | $31,000 |
| Post-Baccalaureate Unclassified Independent | $57,500 |
| Graduate Students (includes undergraduate limit) | $138,000 |
