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Federal Financial Aid Programs

Federal loans provide the funds to pay for your education. Borrow responsibly because loans must be repaid!

Stratford University participates in several Federal Financial Aid programs, including:

  • Federal Stafford Loans
  • Federal PLUS Loans
  • Federal Pell Grants
  • Federal Supplement Educational Opportunity Grants
  • Federal Work-Study Program

All Title IV financial aid funds received by the institution will be credited to the student's account (excluding Federal Work-Study) with the exception of requirements set forth in Section 682.604 of current federal regulations.

Direct Loans Subsidized and Unsubsidized

Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. The U.S. Department of Education offers eligible students at participating schools Direct Subsidized Loans and Direct Unsubsidized Loans.

Here are the interest rates for loans first disbursed between July 1, 2012, and June 30, 2013.

   Undergraduate Students Graduate Students
 Direct Subsidized Loans  3.4%  N/A
 Direct Unsubsidized Loans  6.8%  6.8%

Direct loans have an interest rate which is set annually on June 1. In addition, there is an origination fee that may not exceed 3% and an insurance premium that may not exceed 1% deducted from each disbursement.

Direct Loans have two categories: subsidized and unsubsidized.

  • Direct Subsidized Loans are available to undergraduate students with financial need.
  • Your school determines the amount you can borrow, and the amount may not exceed your financial need.
  • For a subsidized loan, the U.S. Department of Education pays the interest
    • while you’re in school at least half-time,
    • for the first six months after you leave school (referred to as a grace period*), and
    • during a period of deferment (a postponement of loan payments).
  • *Note: If you receive a Direct Subsidized Loan that is first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.
  • Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need.
  • Your school determines the amount you can borrow by considering the cost of attendance and other financial aid you receive.
  • For an unsubsidized loan, you are responsible for paying the interest during all periods.
  • If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).

If you are dependent and enrolled in an undergraduate degree program, your Stafford Loan (including both subsidized and unsubsidized portions) may be as high as:

  • $3,500 your first academic year.
  • $4,500 your second academic year.
  • $5,500 your third and subsequent academic years.
  • Total Stafford Loan indebtedness cannot exceed $23,000.

If you are independent and enrolled in an undergraduate degree program, your Stafford Loan (including both subsidized and unsubsidized portions) may be as high as:

  • $9,500 your first academic year.
  • $10,500 your second academic year.
  • $12,500 your third and subsequent academic years.
  • Total aggregate loan limit is $57,500.
  • No more than $23,000 may be subsidized.

If you are a graduate student, your Direct Unsubsidized Loans  may be as high as:

  • $20,500 per academic year
  • Total aggregate loan limit is $138,500
  • The graduate debt limit includes all federal loans received for undergraduate study.

Federal Plus Loans

Federal PLUS Loans are available to parents of dependent undergraduate students who are enrolled at least half-time. The PLUS Loan is also available to graduate and professional degree students. Financial need is not a requirement.

PLUS Loans are unsubsidized: the borrower is responsible for interest that accrues during the life of the loan. Borrowers can request a loan for up to the full cost of attendance minus any other financial aid.

Federal Pell Grants

Federal Pell Grants, unlike a loan, does not have to be repaid. Pell Grants can be awarded to undergraduate students who have not earned a bachelor's or a professional degree. Pell Grants are considered a foundation of federal financial aid, to which aid from other federal and nonfederal sources might be added.

The maximum Pell Grant award for the 2012-13 award year (July 1, 2011 to June 30, 2012) is $5,550. The amount you get, though, will depend not only on your financial need, but also on your costs to attend school, your status as a full-time or part-time student, and your plans to attend school for a full academic year or less.

Supplemental Educational Opportunity Grants

The Federal Supplemental Educational Opportunity Grants (SEOG) can provide additional grant money. You must be an undergraduates student enrolled at least half time to be eligible. The award is administered by the financial aid office and is part of your overall aid package. The specific amount is based on your financial need, funding availability, and the amount of aid you are already receiving.
Priority is given to students already receiving a Pell Grant. If you are receiving a full Pell Grant, you can receive up to $250 per quarter, with a $1,000 cap for the 2012-2013 award year.

Federal Work-Study Program

Federal Work Study Program 

The Federal Work-Study program provides part-time employment to students who need the earnings to defray the cost of their education. Students may work on or off campus for a qualified public, private or community service organization.

Application for the FWS program may be made through the Student Finance Office and eligibility is based on financial need and the availability of funds. The University will attempt to place students in jobs related to their program of study, and work schedules will be arranged according to class schedules.

Federal Work Study Application