Federal Stafford Subsidized and Unsubsidized Stafford/Ford Student Loan Programs

Rensselaer at Hartford offers low-interest loans to eligible students through the Federal Family Education Loan Program (FFELP). You can borrow loan amounts directly from the federal government through the U.S. Department of Education. And you need not have established credit-worthiness or a credit history in order to qualify. The subsidized loan program is a need-based loan program providing graduate students with up to $8,500 per award year in interest-subsidized loans. The federal government provides this interest subsidy for you. Through the unsubsidized loan program, graduate students may borrow up to $20,500 per award year, minus any subsidized loan amounts received. Unsubsidized loans are not need-based, and you are not provided with an interest subsidy.

Federal loans certified prior to July 1, 2006 have a variable interest rate with a ceiling of 8.25%. The interest rate was adjusted annually and effective from July 1 through June 30 of the following year. For Federal loans for which the first disbursement was made on or after October 1, 1998, the interest rate is based on the bond equivalent rate of the 91-day Treasury bill auctioned just prior to June 1. The interest rates for loans disbursed after June 30, 2006, starting July 1, 2006, is a fixed rate of 6.8% for Federal Stafford loans. If you receive loan funds solely through the subsidized Loan Program, the interest is subsidized by the federal government until you begin repayment. If some or all of your funds are borrowed through the unsubsidized Loan Program you can choose to either make quarterly interest-only payments, or defer interest payments until repayment of principal begins. Deferred interest is capitalized upon repayment.

The aggregate limit you may borrow (for both undergraduate and graduate studies) through the Subsidized Student Loan Program is $65,500 (including any funds received through the Federal Stafford Student Loan program). The aggregate limit including both Subsidized and Unsubsidized Student Loan Programs (and including any funds received through the Federal Stafford, Unsubsidized Federal Stafford, and SLS programs) is $138,500.

If eligible, you are encouraged to take full advantage of these programs with the understanding that student loans must be repaid. It is important, therefore, for you to consider your ability to repay the loan in relation to your projected future earnings. It is also important to note that federal policy specifies that the primary responsibility for meeting educational costs rests with you and your family. Federal student loans are available to help bridge the gap between the cost of education and your family's ability to pay.

The Department of Education recently has set up an Office of the Ombudsman to work with student loan borrowers to informally resolve loan disputes and problems. To contact Ombudsman Debra Wiley's office, please use the toll-free number (877) 557-2575 or visit their web site at ombudsman.ed.gov. The mailing address is: U.S. Department of Education, FSA Ombudsman, 830 First Street, NW, Fourth Floor, Washington DC 20202-5144. The phone number is (877) 557-2575.

For additional information on every stage of the federal financial aid process, please visit the U.S. Department of Education's Student Financial Assistance web site: www.ed.gov/studentaid. Numerous helpful links can be found at this site, particularly if you click on "Funding Your Education," or "Visit our New Federal Student Aid Portal."

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