Skip to main content Skip to search
UTSA header graphic

Student Financial Aid and Enrollment Services


Federal Stafford Loans

Federal Stafford loans are the most commonly borrowed student loans. UTSA participates in the Federal Family Educational Loan Program (FFELP) and works with many lenders to provide these loans to students. Loans are a form of financial aid that must be repaid, with interest. Federal Stafford loans are long-term loans with no payment required while the student is in school or during their six-month grace period. Many lenders offer repayment incentives such as a reduction in interest and fees for timely repayment.  

Types of Stafford Loans

  • Subsidized Stafford Loan-

    • Are loans based on need as established by the school's cost of attendance. The U.S. Department of Education pays the interest while you are in school at least half time, for the first six months (grace period) after you leave school, and during a period of deferment (meaning a postponement of loan payments). The amount of your subsidized loan cannot exceed your financial need.

  • Unsubsidized Stafford Loan-

    • Are loans that are non-need based and can assist students in meeting educational costs. The student is responsible for the interest payments from the time the loan is disbursed until it is paid in full. You have the option to pay the interest as you continue to attend school or let the interest accumulate and let it be added to the principal amount of your loan. This means that the interest will be “capitalized” and the total amount you repay will be higher than if you paid the interest all along.

    Interest Rates

    For all Stafford loans first disbursed on or after July 1, 2006, the interest rate is fixed at 6.8 percent. This change from a variable to a fixed interest rate does not affect a borrower's variable interest rate on loans made before July 1, 2006.

    For Stafford Loans first disbursed between July 1, 1998 and June 30, 2006, the interest rate is variable (adjusted annually on July 1st) but will not exceed 8.25 percent. (You'll be notified any time the variable rate changes.) The interest rate for these loans in 2006-07 is 7.14 percent. (This rate applies to loans in repayment status; the rate may be lower during grace and deferment periods.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Designed & maintained by Financial Aid and Enrollment Services—Last update: May 13, 2008