Federal Stafford Loans are low-interest loans backed by the federal government. For students who must borrow to supplement personal and family savings and part-time employment, Stafford Loans are generally the first choice, because they are less expensive than alternative loans which should be avoided except in extraordinary circumstances. Stafford Loans have a fixed 5.05% interest rate for the current academic year.
Stafford loans come in two types: subsidized and unsubsidized.
- Subsidized Stafford Loans are preferable because the government pays all the interest while you are enrolled in school at least half-time and for a 6 month grace period thereafter.
- Unsubsidized Stafford Loans, on the other hand, begin to grow interest 60 days after disbursement. Students may choose to make monthly payments on unsubsidized loans while they are in school, or they may choose not to pay and let the interest accrue.
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- Be a U.S. citizen, permanent resident, or other eligible non-citizen.
- Have a high school diploma or its recognized equivalent.
- Be admitted to BYU-Hawaii as a regular student in a degree-seeking undergraduate program, or be pursuing initial teacher certification, or required re-certification, or taking prerequisite courses for admission to a graduate degree-seeking program (for a current or future enrollment during the academic year).
- Meet all Satisfactory Academic Progress (SAP) requirements
- Be enrolled in at least half-time (6 hours per semester, Audit and Challenge credits do not count). Be enrolled in at least 51% of on-campus credits.
- Be awarded by your last day of eligible enrollment and not have exceeded federal loan limits.
- Not be in default on a federal student loan or owe a refund on a federal grant.
Please note that at BYU–Hawaii, Stafford loans are by default disbursed to a student's account over three (3) semesters. Loan Limits 2018-2019
Award Amounts, effective June 1, 2018