Federal Subsidized Stafford Loan
The Federal Subsidized Stafford Loan is the first loan choice for
most students. This loan is based on financial need and the federal
government subsidizes the interest during your school enrollment.
The terms include:
- Annual Loan Limit: $5,500 Undergraduate-level
(Year 3 & 4)
$8,500 Graduate-level
- Cumulative Loan Limit: $23,000 Undergraduate-level
$65,500 Graduate-level
- Interest Rate: Fixed at 6.8%
- Number of Disbursements: At least two per academic
year
- Repayment Term: 10 years
- Loan Fees: Varies by lender
Maximum origination fee is 3%
Maximum guarantee fee is 1%
Federal Unsubsidized Stafford Loan
The Federal Unsubsidized Stafford Loan is available for independent
students and is not based on financial need. The student is responsible
for accrued interest, and can defer interest payments until graduation.
The terms include:
- Annual Loan Limit: $5,000 Undergraduate-level
(Year 3 & 4)
$10,000 Graduate-level
- Cumulative Loan Limits (i.e. total limit for
Subsidized and Unsubsidized loans):
$46,000 Undergraduate-level
$138,500 Graduate-level
- Interest Rate: Fixed at 6.8%
- Number of Disbursements: At least two per academic
year
- Repayment Term: 10 years
- Loan Fees: Varies by lender
Maximum Origination fee is 3%
Maximum Guarantee fee is 1%
Federal Parental Loan for Undergraduate Students (PLUS)
The PLUS Loan is a nonneed-based loan for the parents of undergraduate
students.
A credit check is completed as part of the PLUS Loan application
process. If the parent has an adverse credit history, he/she will
be ineligible for a PLUS Loan. In this situation, the dependent
student will be eligible for a Federal Unsubsidized Stafford Loan.
- Loan Limit: Varies (Cost of attendance less other
aid on a per-student basis.)
- Cumulative Loan Limit: None
- Interest Rate: Fixed at 8.25%
- Number of Disbursements: Two per academic year
- Repayment Term: 10 years
- Loan Fees: Maximum loan origination fee is 3%
Maximum guarantee fee is 1%
Alternative Loans
Alternative loans are from private sources and may be used to cover
the differences between the financial aid you receive and your total
cost of attendance, as determined by the Mayo Student Financial
Aid Office. Alternative loans generally have higher interest rates
and origination fees than other educational loans. The loan terms
and conditions vary by lender. Please consult with the Financial
Aid Office to obtain more information on these types of loans.
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