The Federal Stafford Loan is a non-credit based student loan for undergraduate and graduate students. There are two basic types of Stafford loans: subsidized and unsubsidized. Both have a 6 month grace period (a period of time when a student is no longer enrolled for at least half-time and not required to make payments) and fixed interest rates, which are determined each year on July 1st. For interest rates, please refer to the Federal Student Aid Interest Rates website and the Loan Comparison Chart.
Government pays the interest on behalf of the student while the student is in the deferment period and grace period. Once in repayment, the student is responsible for paying the interest on the loan as well as the principal amount borrowed.
The student’s cost of attendance must exceed his/her Expected Family Contribution (EFC) to be eligible for “need-based” aid (such as grants, scholarships and subsidized loans).
The EFC is based on information collected from the Free Application for Federal Student Aid (FAFSA). The total amount of the subsidized loan combined with other “need-based” aid cannot exceed the student’s “financial need.”
Subsidized loans are available only to undergraduate students.
Government does not pay the interest on behalf of the student. Instead, the borrower is responsible for all the interest that accrues and capitalizes from the time the loan disburses.
Independent students may be eligible for greater unsubsidized amounts than dependent students.
Though it is non-need based aid, the amount of unsubsidized loan combined with other aid cannot exceed the total estimated cost of attendance.
If you were awarded a Federal Stafford Direct Loan during this academic year at another institution, make sure that the remainder of that loan is canceled at your previous school before applying for a loan at UCF.
Receiving financial aid disbursements from another institution within the same academic year may have an impact on your remaining aid eligibility at UCF. The amount of loans received at a previous institution may affect your eligibility to receive loans at UCF.
Before you apply for any type of financial assistance, make sure you meet the general eligibility requirements.
File the Free Application for Federal Student Aid (FAFSA) for the current aid year. We recommend that you file by the priority deadline of December 1st.
After UCF receives the results of the FAFSA from the Federal Processor, we will automatically offer the maximum Federal Direct Stafford Subsidized and Unsubsidized Loan based on your eligibility.
Accept, reduce, or decline your offered loan(s) for each term separately on the myUCF View Financial Aid screen by clicking the “Accept/Decline Awards” button and indicating your selection.
If you’re not ready to apply for federal student aid, but you’d like to estimate your aid, check out FAFSA4caster. The FAFSA4caster is an early eligibility estimator that can help you plan ahead when it comes to paying for college.
The total combined amounts a student may borrow in subsidized and unsubsidized Stafford loans may not exceed the annual loan limits or aggregate limits, which are specified in federal regulations.
The amount of the subsidized loan combined with other “need-based” aid cannot exceed the student’s “financial need.” The EFC is based on information collected from the Free Application for Federal Student Aid (FAFSA). There is a time limitation on Federal Direct Subsidized loans.
Although the unsubsidized loan is a non-need based aid, the amount of the unsubsidized loan, combined with other aid, cannot exceed the total estimated cost of attendance.
All awards, including accepted Direct Stafford Loans, are subject to change if corrections to your financial aid package are required.
Annual loan limits are determined by class standing (freshman, sophomore, etc.) and dependency status.
| Class Level | Credits Earned |
|---|---|
| Freshman | 1–29 |
| Sophomore | 30-59 |
| Junior | 60-89 |
| Senior | 90-120 |
