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Federal Stafford Loans
Loan Programs

Federal Stafford Loans are long-term, low-interest loans awarded to students by SUNY ESF which are funded through a bank or other lending agent.  Loans offered through this program are guaranteed, meaning that eligibility is not based on credit history or income.  All students who meet the general eligibility requirements for federal student aid and have not reached the aggregate loan limit, defaulted on a previous loan, or do not owe a repayment for a federal grant are eligible for Stafford Loan consideration.

Types of Federal Stafford Loans

Federal Stafford Loans are available as subsidized, unsubsidized, or a combination of both types.  Students are not required to make payments on either type of loan while enrolled at least half-time at an eligible educational institution.  However, students may choose to make regular or interest-only payments while enrolled.

Subsidized Stafford Loans are awarded based on each student's demonstrated financial need, as determined by the SUNY ESF Financial Aid Office.  These loans are interest free while the student is enrolled at least half-time at an eligible educational institution or during authorized grace and deferment periods.  Interest is charged when the loan is in a repayment or forebearance status.

Unsubsidized Stafford Loans are awarded regardless of each student's demonstrated financial need.  These loans begin to generate interest charges immediately after disbursement.  These charges may be defered during at least half-time enrollment, grace, and deferment periods, but they will be capitalized (added to the outstanding loan balance).

Federal Stafford Loan Amounts

The amount available in Federal Stafford Loan funding will vary for each student.  The type and amount of each loan is determined by the SUNY ESF Financial Aid Office based on demonstrated financial need, class level, other financial aid, and previous borrowing totals.  Maximum loan eligibility is as follows:

Dependent undergraduate students can borrow up to $5,500 in the first year (no more than $3,500 may be subsidized); $6,500 in the second year (no more than $4,500 may be subsidized); $7,500 in the third, fourth, and fifth years (no more than $5,500 may be subsidized), up to a total of $31,000 aggregate balance (no more than $23,000 may be subsidized).

In addition to the amounts listed above, independent undergraduate students and students whose parents are unable to borrow through the Federal PLUS Program can borrow up to $4,000 in the first and second years; $5,000 in the third, fourth, and fifth years, up to a total of $57,500 aggregate balance (no more than $23,000 may be subsidized) for all Stafford Loans.

Graduate students can borrow up to $20,500 per year, up to a total of $138,500 aggregate balance (no more than $65,500 may be subsidized).

Undergraduate Loan Amounts - Dependent Students*

Class Year	Base Loan Amount	Additional Unsubsidized Loan	Total
First Year	$3,500	$2,000	$5,500
Second Year	$4,500	$2,000	$6,500
Third Year	$5,500	$2,000	$7,500
Fourth Year	$5,500	$2,000	$7,500
		Subsidized Loans	Total Loans
Aggregate Totals		$23,000	$31,000

Undergraduate Loan Amounts - Independent Students* -OR-
Students Whose Parents are Unable to Borrow Through the PLUS Program**

Class Year	Base Loan Amount	Additional Unsubsidized Loan	Total
First Year	$3,500	$6,000	$9,500
Second Year	$4,500	$6,000	$10,500
Third Year	$5,500	$7,000	$12,500
Fourth Year	$5,500	$7,000	$12,500
		Subsidized Loans	Total Loans
Aggregate Totals		$23,000	$57,500

Graduate Loan Amounts*

Class Year	Subsidized Stafford Loan	Unsubsidized Stafford Loan	Total
All Years	$8,500	$12,000	$20,500
		Subsidized Loans	Total Loans
Aggregate Totals		$65,500	$138,500

*These amounts indicate the federal maximums. Individual student loans are based on the student's need level, expected costs, other financial aid, and additional factors.
**Based on the denial of a PLUS loan application or pre-approval. New loan amounts will be automatically offered upon receipt of denial documentation.

Federal Stafford Loan Terms and Conditions

Interest Rates
Federal Stafford Loans disbursed on or after July 1, 2006 have a fixed interest rate of 6.80%.  The College Cost Reduction and Access Act will adjust the fixed interest rate on all undergraduate Subsidized Stafford Loans according to the following chart:

For Loans Disbursed	Fixed Interest Rate
7/1/06 to 6/30/08	6.8%
7/1/08 to 6/30/09	6.00%
7/1/09 to 6/30/10	5.60%
7/1/10 to 6/30/11	4.50%
7/1/11 to 6/30/12	3.40%

Federal Stafford Loans disbursed before July 1, 2006 have an annually variable interest rate which is capped at 8.25%.  The effective rate for these loans from July 1, 2007 through June 30, 2008 is 6.62% if the loan is in an in-school, grace, or deferment period.  The effective rate for loans in repayment status during the same time period is 7.22%.

Fees
All Federal Stafford Loans may be subject to an origination (1.5%) and insurance fee (1%) of up to 2.5%, taken from the value of the loan at the time it is disbursed to the school.  The loan amounts listed above and on financial aid award notifications represent the gross amount (amount before the fees have been paid).  Students should consider the fees charged by each lender when choosing their loan provider.  The Higher Education Reconciliation Act (November 1, 2007) will adjust Stafford Loan origination fees according to the following chart:

For Loans Disbursed	Origination Fee
7/1/07 to 6/30/08	1.5%
7/1/08 to 6/30/09	1.0%
7/1/09 to 6/30/10	0.5%
7/1/10 & Beyond	0.0%

Repayment
In most cases, regular loan payments begin after the loan grace period, or 6 months after the student graduates, leaves school, or drops below half-time enrollment.  Repayment will initially be scheduled for fixed monthly payments over a 10 year period.  Each lender will offer other repayment options for interested students.

How to Apply for a Federal Stafford Loan

Students should complete the following steps to apply for a Federal Stafford Loan:

1. Complete the Free Application for Federal Student Aid (FAFSA)
2. Accept the desired loan(s) on the Financial Aid Award Notification Letter

Students accepting a Federal Stafford Loan for the first time at SUNY ESF or students who would like to choose a new lender should also:

1. Complete an online Federal Stafford Loan Entrance Interview
2. Review SUNY ESF's Guide to Selecting a Student Lender
3. Select a lender and complete a Master Promissory Note (Clink on lender name for additional information and an online promissory note/application)

PLEASE NOTE:  You are not required to select a lender from this list.  If you choose to work with a different lender, a blank application/promissory note can be downloaded and printed using the "Blank Application" link below.  If using this method, please return the completed form to the Office of Financial Aid and Scholarships.  We will electronically process the loan with the lender you have selected.  You may also apply electronically from many lender websites.  Always remember to indicate SUNY ESF using the school code 002851.

Please note that the lenders included in this list are not in alphabetical order.  Following a thorough evaluation process, SUNY ESF has determined that the products and services offered by these lenders are all comparable.  Location on the list does not indicate SUNY ESF's rating of any lender in relation to the others.

We recommend certain lenders who have a history of excellent service for our students.  They are as follows:
Wachovia Education Finance 800-338-2243 Lender Code: 830005	Edamerica 800-337-1009 Lender Code: 831453	Access Group 800-282-1550 Lender Code: 808851
Nellie Mae 800-634-9308 Lender Code: 822583	Blank Application Select a Different Lender School Code: 002851	Chase 800-487-4404 Lender Code: 803000
Bank of America 800-344-8382 Lender Code: 824421	Citizens Bank 800-708-6684 Lender Code: 807745	Citibank 800-967-2400 Lender Code: 826878

Last updated on May 20, 2008