Affordable Stafford Loan

For undergraduate and graduate students

The federal government backs loans for both undergraduate and graduate students who are enrolled at least part-time in a degree program at an eligible school. Most students qualify for Federal Stafford Loans and there are no credit-check or co-signer requirements. Financial Aid Award Letters that a school sends typically include the dollar amount for federal loan eligibility. The table below lists federal loan limits and annual interest rate information.

Interest Rate and Fees

0.50% origination fee charged by the federal government.¹
0-1.00% default (guarantee) fee depending on guarantor chosen by the school.
Undergraduate Students: fixed interest rate of 5.60% for subsidized portion and 6.80% for unsubsidized portion.²
Graduate Students: fixed interest rate of 6.80% for both subsidized and unsubsidized portions.

Features and Benefits

0.25% interest rate reduction for automatic payment deduction from any bank account.
Unsubsidized program is open to all students regardless of financial need.
On a $10,000 Affordable Stafford Loan, the savings represent $195.59 or more for subsidized loan borrowers and $251.90 or more for unsubsidized loan borrowers.³

Borrowing Limits

Annual:

Dependent Students [Definition]

1st Year: $5,500 (subsidized: $3,500 and unsubsidized: $2,000) [Definitions]
2nd Year: $6,500 (subsidized: $4,500 and unsubsidized: $2,000)
3rd, 4th, & 5th Years: $7,500 (subsidized: $5,500 and unsubsidized: $2,000)

Independent Students

1st Year: $9,500 (subsidized: $3,500 and unsubsidized: $6,000)
2nd Year: $10,500 (subsidized: $4,500 and unsubsidized: $6,000)
3rd, 4th, & 5th Years: $12,500 (subsidized: $5,500 and unsubsidized: $7,000)

Graduate Students

Up to $20,500 (subsidized: $8,500 and unsubsidized: $12,000)

Aggregate:

Dependent undergraduate students: $31,000
Independent undergraduate students: $57,500
Graduate/Professional Student: $138,500
Some Health Professions Students (check with your school): $224,000

Eligibility

Have a high school diploma, GED or have passed a similar independent test approved by the Department of Education.
Be a U.S. Citizen or eligible non-citizen.
Be enrolled with the Selective Service (if you are male, aged 18-25).
Be enrolled at least half-time as a regular student in an accredited institution.

Disbursement

Payable to the student and the school.

Repayment

Repayment is deferred until 6 months after the student graduates, drops below half-time status or withdraws from school.
Borrowers can choose to make interest only payments while in school.
Standard 10-year repayment is what you agree to upon signing your Master Promissory Note. It means one level payment to make monthly.
Other repayment options include Graduated repayment and Income Sensitive repayment.

How to Apply

Before you apply for the Stafford Loan, you must fill out a Free Application for Federal Student Aid (FAFSA). This is a Federal document that can be completed online at http://www.fafsa.ed.gov/.

Then fill out an application for the Stafford Loan.

Application for Delaware and Pennsylvania Schools
Application for Illinois, Indiana, and Michigan Schools
Application for Ohio Schools
Application for Connecticut, Massachusetts, Maine, New Hampshire, New Jersey, New York, Rhode Island and Vermont Schools
For additional information please contact the financial aid office at your school or call 1-800-708-6684

If you have questions, or want to receive a paper application, Email us at educationfinance@citizensbank.com or call our Education Finance Specialists at 1-800-708-6684.

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© Copyright 2009 Citizens Financial Group. All rights reserved.
Citizens Bank is a brand name of RBS Citizens, N.A. and Citizens Bank of Pennsylvania. Deposit accounts held at RBS Citizens, N.A. and Citizens Bank of Pennsylvania are separately insured.

¹ Effective July 1, 2009 – June 30, 2010 a 0.50% origination fee is charged by the federal government and a 1.00% default (guarantee) fee may be charged by the guarantor on the Affordable Stafford Loan.

² The fixed rate for subsidized Stafford Loans for undergraduate students is 5.60% for loans first disbursed July 1, 2009 through June 30, 2010. Unsubsidized Stafford Loans will remain at 6.80%. Subsidized Stafford Loans are offered to students with a demonstrated financial need.

³ Total savings calculation assumes 120 months loan repayment terms, continuous on time payments for full term of loan, use of ACH beginning with first payment and that the borrower will remain eligible for all benefits for full term. The calculations set forth above are examples only and may not be indicative of an individual borrower's potential savings. Actual savings may vary based on borrower payment habits, such as failing to make payments on time or failing to have funds in an account designated for ACH.

Citizens Bank reserves the right to modify or discontinue these benefits at any time. Changes to these benefits, if any, will affect only loans disbursed after the changes occur.

Citizens Bank Federal Loan programs are funded by RBS Citizens, N.A. or Citizens Bank of Pennsylvania, Members FDIC and Equal Opportunity Lenders. RBS Citizens, N.A. or Citizens Bank of Pennsylvania may sell your student loan to a third party, and, in the event your loan is sold, it will use all commercially reasonable means to ensure that all of its promises to you, including all borrower benefits that you might become eligible for during the loan’s repayment period, will be honored. If you consolidate your loan prior to earning a benefit, you waive your right to that benefit, but you have the ability instead to earn consolidation benefits. If you consolidate your loan after you earn a benefit, that benefit will not be retracted or forfeited.