Rhode Island Higher Education Assistance Authority: Federal Stafford Loans

Assisting Rhode Island's Students...Investing In Rhode Island's Future

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

	Dependent Students Subsidized + Unsubsidized	Independent Student Subsidized + Unsubsidized = Total Amount
Grade Level 1	$3,500	$3,500 + $4,000 = $7,500
Grade Level 2	4,500	4,500 + 4,000 = 8,500
Grade Level 3,4,5	5,500	5,500 + 5,000 = 10,500
Graduate/Professional	8,500	8,500 + 12,000 = 20,500

Interest Rate

The interest rate is currently fixed at 6.8%.

Repayment

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

Last Modified: May 29, 2007 02:27:23 PM

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.