Rhode Island Higher Education Assistance Authority
Assisting Rhode Island's Students...Investing In Rhode Island's Future
Login | About | Contact

Search RIHEAA

Students and Parents
Federal Loans
Scholarships
Scholar Recognition Program
Grants
College Aid Calculator
About the FAFSA
Chat Night
Financial Aid Professionals
Guidance Counselors
Saving For College
About RIHEAA
News
Web Links
Contact RIHEAA
Log in to our secure portal
Home

Federal Stafford Loans

Home > Students & Parents > Federal Loans > Federal Stafford Loans

The Rhode Island Higher Education Assistance Authority is the guarantor for the Federal Stafford Student Loan.

General Eligibility Requirements

To qualify for a Stafford Loan a student must:

  • be a US citizen or eligible non-citizen;
  • be enrolled or accepted for enrollment as, at least, half-time status in a:
    1. degree, certificate or other program leading to a recognized educational credential; or
    2. course of study necessary for enrollment in a degree or certificate program; or
    3. program necessary for a professional credential or certificate required by a State for employment as an elementary or secondary school teacher;
  • if already enrolled, be making satisfactory academic progress as defined by the school's satisfactory academic progress policy;
  • not owe a refund on any Title IV grant or Perkins Loan;
  • if in default on any Title IV loan, must make satisfactory repayment arrangements with the holder of that loan(s) to re-establish Title IV eligibility.

Application Procedure

Applicants must file a Free Application for Federal Student Aid (FAFSA) and a loan application. The FAFSA is available on the web, in high school guidance offices, college financial aid offices and at RIHEAA. A loan application may be obtained from a lending institution, a college financial aid office or RIHEAA.

Application Deadline

Loan applications can be filed up to the last day of program enrollment.

Subsidized Federal Stafford Loan

Students must demonstrate financial need in order to borrow through the subsidized Federal Stafford Loan Program. The Stafford Loan is a low interest, federally subsidized loan available to assist eligible students in financing the costs of attending post-secondary institutions. The US Department of Education pays the interest that accrues on the loan during the in-school, grace and authorized deferment periods.

Unsubsidized Federal Stafford Loan

The student eligibility requirements are the same as those for the subsidized Stafford Loan except that the borrower is not required to demonstrate financial need. The unsubsidized Stafford Loan is a low-interest loan available to assist eligible students in financing the costs of attending post-secondary institutions. Interest is not subsidized by the US Department of Education; the student borrower is responsible for all interest that accrues on the loan from the date of the first disbursement. Payment of principal is not required during the in-school, grace or authorized deferment periods.

Borrowing Limits Under H.R. 5715

Dependent Students
(Except Students Whose Parents Cannot Borrow PLUS)

Base Amount Additional Unsubsidized loan amount
Prior to July 1, 2008 Effective July 1, 2008
Freshmen $3500 0 $2000
Sophomore $4500 0 $2000
Junior or Senior $5500 0 $2000

Independent Undergraduate Students and Dependent Students Whose Parents Cannot Borrow a PLUS Loan Base Amount Additional Unsubsidized loan amount
Prior to July 1, 2008 Effective July 1, 2008
Freshmen $3500 $4000 $6000
Sophomore $4500 $4000 $6000
Junior or Senior $5500 $5000 $7000

Loan Limits Base Amount Subsidized/Unsubsidized Additional Unsubsidized
Preparatory Undergraduate $2625 $4000
1st Year Undergraduate $3500 $4000
2nd Year Undergraduate $4500 $4000
3rd year and beyond Undergraduate $5500 $5000
Teacher Certification $5500 $7000
Preparatory Graduate/Professional $5500 $7000
Graduate/Professional $8500 $12000

Interest Rate

The legistlation lowers interest rates for a five year period for undergraduate subsidized Stafford loans for both the FFEL and Direct loan programs. The reductions apply to loans with first disbursements made:

  • Subsidized Stafford Loan Rates
    • On or after July 1, 2008 and before July 1, 2009 at the rate of 6.0%
    • On or after July 1, 2009 and before July 1, 2010 at the rate of 5.6
    • On or after July 1, 2010 and before July 1, 2011 at the rate of 4.5%
    • On or after July 1, 2011 and before July 1, 2012 at the rate of 3.4%
    • On or after July 1, 2012 at the rate of 6.8%
  • Unsubsidized Stafford Loan Rates will remain at 6.8%

Repayment

Repayment begins six months after you stop going to school on at least a half-time basis.

Last Modified: June 18, 2009 09:53:58 AM


Contact RIHEAA | Privacy | Accessibility

RIHEAA policy prohibits discrimination based upon race, color, sex, age, gender identity or expression, national origin, religion, handicap/disability status, veteran status, or sexual orientation.

Copyright © 2002-2008, RI Higher Education Assistance Authority. All rights reserved.
Maintained by webmaster@riheaa.org