Stafford Loans


Stafford Loan


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.

Subsidized Stafford Loans disbursed on or after July 1, 2013 have a fixed 6.8% annual percentage rate (APR), Unsubsidized Stafford Loans disbursed on or after July 1 2006 will also have a fixed 6.8%(APR). Fixed federal loan rates are fixed and will never go up. By contrast, alternative loan rates are variable and may reach as high as 25% APR depending on economic conditions. This makes alternative loans potentially much more expensive than Stafford loans.

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.

High income does not prevent students from qualifying for Unsubsidized Stafford or PLUS Loans.

Because debt should be kept within a reasonable limit, consider other forms of aid such as savings, family assistance, part-time employment, grants, scholarships and employer tuition reimbursements, before applying for loans.

Award Amounts - Effective July 1, 2008:

Stafford Loan limits depend on year in school and dependency status.

Year/Classification Base Amount Additional Unsubsidized Loan Amount Total
Dependent Students*
Freshman $3,500 $2,000 $5,500
Sophomore $4,500 $2,000 $6,500
Junior or Senior $5,500 $2,000 $7,500
Independent Students*
Freshman $3,500 $6,000 $9,500
Sophomore $4,500 $6,000 $10,500
Junior or Senior $5,500 $7,000 $12,500

NOTE: The amounts in the chart above are the maximum amounts that you may borrow for the academic year. You might receive less than the maximum depending on the total other financial aid you receive. The maximum amount you borrow may also be less if you are enrolled for less than an academic year.

*Dependent students whose parents are denied a PLUS loan may receive additional unsubsidized Stafford up to the Independent Undergraduate limit.


General eligibility

  • Be a U.S. citizen, permanent resident, or other eligible noncitizen and have a high school diploma or its recognized equivalent.
  • Be admitted to BYUH as a regular student in a degree-seeking undergraduate program, or be pursuing initial teacher certification, or required recertification, 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 requirements and not be in default on a federal student loan or owe a refund on a federal grant.
  • Be enrolled at least half-time (6 hours per semester, Audit and challenge credit 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.

How to apply

1. Complete the Free Application for Federal Student Aid(FAFSA) for the current school year and have the results sent to Brigham Young University Hawaii(FAFSA ID# 001606).

2. Complete Verification if necessary.

3. Complete Entrance Counseling

4. Complete MPN

Enter, select the Financial Aid tab. Accept your loan.

To request Unsubsidized Stafford Loans, you need to fill out this request form