Federal Stafford Loan

Federal Stafford Loans are low-interest loans for undergraduate and graduate students.

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Stafford Loans are an extremely popular and cost-effective source of education funds. Eligibility is based on cost of attendance and Expected Family Contribution.

Who It's For: Eligible students looking to attend college

  • Get 0.25% off your interest rate with automated payments from your checking or savings account1
  • Undergraduate Subsidized Stafford Loans have fixed interest rates as low as 5.60% (effective 7/1/09)
  • Undergraduate Unsubsidized and Graduate Subsidized/Unsubsidized Stafford Loans have a 6.80% fixed interest rate2
  • Maximum of $5,500 your first year in school
  • No payments while enrolled half time or more2
  • No penalty for early repayment
  • Does not require a co-signer
  • U.S. Department of Education origination fee of 0.50% and federal default fee of 1% may be deducted from loan funds (effective 7/1/09)
  • An extended repayment plan may be available
  • Dedicated customer service center

More information:

Subsidized vs. Unsubsidized Stafford Loans

There are two types of Stafford Loans: subsidized and unsubsidized. Depending on household income, a student may be eligible for one or both loans. The school will specify the loan type for which the student should apply.

  • Subsidized Federal Stafford Loans are awarded on the basis of financial need. The government pays the interest while the student is in school, in deferment, and during the grace period before repayment begins.
  • Unsubsidized Federal Stafford Loans are available to students regardless of income. Student is responsible for all interest that accrues while they are in school, in deferment and during their grace period.

Eligibility Requirements

You must:

  • be enrolled at least half time at an eligible school and maintaining satisfactory academic progress
  • complete the Free Application for Federal Student Aid (FAFSA)
  • be a U.S. citizen, a permanent resident or an eligible non-resident
  • not be currently in default
  • not owe a refund on any Title IV loan or grant
  • be registered with Selective Service (if you’re a male under age 26)

Borrowing Limits

Loan limits vary depending on a student's year in school and whether they are considered a financially dependent or independent student. The school's financial aid office will determine a student's eligibility for a subsidized or unsubsidized loan.

Loan proceeds are usually sent to the school in two or three payments called disbursements. This chart lists the borrowing limits.

Fees

Two fees may be deducted from the loan funds and are included in the amount a student will pay back. The U.S. Department of Education charges an origination fee of 0.50% (effective 7/1/09) and the loan guarantor charges a federal default fee of 1%. The default fee will be waived if the participating guarantee agency selected by the borrower will pay the fee.

Repayment

Once you graduate, withdraw or drop below half-time status, you will be granted a six-month grace period. During your grace period, your lender will provide you with a repayment disclosure statement containing your repayment terms, including the amount of your monthly payment and when your first payment is due. Repayment of the Federal Stafford Loan begins at the end of this six-month grace period and usually extends up to ten years. The payment amount is determined by the total amount borrowed, but cannot be less than $50 per month; however, you should talk to your lender to determine other flexible repayment terms that may be available.

For more information, contact our customer service center to speak with one of our student loan specialists at 1-800-762-1001, Monday through Thursday from 8am to 7pm and Friday from 8am to 6 pm Eastern time.

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1The interest rate reduction benefit is lost if automatic payment deduction is discontinued. 2For unsubsidized Stafford Loans, interest will accumulate during periods of deferment. Paying the accrued interest each quarter will save money over the repayment term of the loan because any unpaid interest will be added to the principal loan balance at the end of the deferment period.

PNC reserves the right to modify, expand or discontinue the discount terms of this program at any time without notice. Loans may be sold to other financial organizations including the federal government. The interest rate and term of the loan will not change if a loan is sold.

Customer Service

To speak to a loan specialist, call:

1-800-762-1001

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