How To Apply

To receive a Federal Stafford Loan you must apply for financial aid. If you have not yet applied for financial aid, please do so as soon as possible. If you have applied for financial aid, and your award letter includes the Federal Stafford Loan, review the following next steps.

New USC Students

(Continuing Students see below)

Complete all of the following five steps to obtain your Stafford Loan:

• Complete a Stafford Loan Request form:
• 2009-2010 Stafford Loan Request Form
• You will have to choose a lender in order to complete the form. You may borrow from any lender (See Lender Section below); and,
• Fax the completed form to the Financial Aid Office. For instructions, visit www.usc.edu/contactfao; and,
• Once your Stafford Loan is certified you will receive a confirmation e-mail from our office.  First-time borrowers and those changing lenders will be sent instructions for completing a Master Promissory Note (MPN) online by their lender. If you have not received the MPN from your lender within 10 days of the confirmation e-mail, please contact your lender to obtain your MPN; and,
• First-time undergraduate and graduate borrowers at USC, as well as entering graduate students who borrowed at USC as an undergraduate student, must complete entrance loan counseling online at the EdFund website (Click on "EdTest" in the Quick Links section); and,
• In addition, first-time undergraduate borrowers must attend an in-person entrance loan counseling session. For a schedule of sessions, see the Mandatory Entrance Loan Counseling section above.

Continuing USC Students

If you are a continuing USC student who borrowed your maximum Federal Stafford Loan eligibility in the previous academic year, and you file a Free Application for Federal Student Aid (FAFSA) and meet all eligibility requirements in the current academic year, USC will automatically process your Federal Stafford Loan through your prior lender for your maximum eligibility. If your previous lender is no longer participating, we will notify you and ask you to select a new lender.

Refer to “New USC Students” above, and complete Steps 1 and 2 as well as any other applicable steps if:

• You have never borrowed at USC,
• You borrowed less than your maximum eligibility in the previous year,
• You wish to borrow less than your maximum eligibility this year,
• You wish to change lenders, or
• Your previous lender is no longer participating.

Basic Information

• To be eligible for the Federal Stafford Loan, you must be enrolled at least half-time.
• You must maintain Satisfactory Academic Progress toward your degree objective.
• Your loan is generally disbursed in two equal parts, at the beginning of each semester.
• Federal Origination Fees will reduce each disbursement
  1.0 percent for all loans made after July 1, 2008
  0.5 percent for all loans made after July 1, 2009
  0.0 percent for all loans made after July 1, 2010
• Federal Default Fees may also reduce each disbursement
  1.0 percent for all loans made after July 1, 2006
• The 10-year repayment period begins six months after you graduate, withdraw or drop below half-time enrollment.
• For more information, read the Stafford Loan Advisory.

interest rate and Subsidized vs. Unsubsidized Stafford Loans

The interest rate on the Federal Stafford Loan is a fixed rate.

• Undergraduate Subsidized Federal Stafford Loans
  6.8 percent for loans first disbursed July 1, 2006 to July 1, 2008
  6.0 percent for loans first disbursed July 1, 2008 to July 1, 2009
  5.6 percent for loans first disbursed July 1, 2009 to July 1, 2010
  4.5 percent for loans first disbursed July 1, 2010 to July 1, 2011
  3.4 percent for loans first disbursed July 1, 2011 to July 1, 2012

• Undergraduate Unsubsidized Federal Stafford Loans
  6. 8 percent for all loans first disbursed after July 1, 2006

• Graduate Subsidized and Unsubsidized Federal Stafford Loans
  6.8 percent for all loans first disbursed after July 1, 2008

If your loan is “Subsidized” it means that the federal government pays the interest that accrues on your loan while you are enrolled at least half time and during a six month grace period after you graduate, withdraw or drop to less-than-half-time enrollment. After the six-month grace period, you must begin to repay your loan and you are responsible for the interest. Eligibility for the Subsidized Stafford Loan is determined based on financial need.

If your loan is “Unsubsidized” it means that you are responsible for the interest from the time the loan is disbursed. While you are enrolled at least half-time you may defer interest payments and capitalize the interest. “Capitalization” means that the interest is added to the loan balance, increasing the loan's size and cost. To reduce the cost of borrowing, consider making in-school interest payments.

Annual Loan Limits for Federal Stafford Loans

Based on academic level and federal dependency status, students may borrow up to the amounts listed in the table below on an annual basis. Please note Subsidized Stafford Loans are limited by your financial need and Unsubsidized Stafford Loans are limited by your cost of attendance less other aid received.

Aggregate Loan Limits for federal Stafford Loans

Based on academic level and federal dependency status, students may borrow up to the amounts listed in the table below for their entire academic careers.

Federal Stafford Loan Lenders

USC has analyzed all known lender programs of this type offered to to USC students. The criteria used to evaluate these lenders included (in order of importance) customer service; technology; lender background; disclosure/transparency; default prevention; and, financial literacy initiatives. The compilation and analysis of data during the lender selection process was conducted by an independent advisory firm, with USC making the final selection of lenders based solely on the best interest of borrowers.

The use of a lender on the USC list is not required. USC will process loans from any eligible lender the student selects. USC may not deny or otherwise impede the borrower's choice of a lender or cause unnecessary delay in the loan certification for those borrowers who choose a lender that is not included on the lender list below.

The top lender programs for the Federal Stafford Loan, based on the analysis described above, are presented on this page in alphabetical order. Bear in mind that USC does not endorse or recommend specific lenders. For more information, contact the Financial Aid Office at www.usc.edu/contactfao.

Although every effort is made to provide the most accurate and up-to-date information, the content of this publication is subject to change due to alteration in federal, state, university or lender policy or procedure. The USC Financial Aid Office cannot be held liable for the consequences of such changes in policy or procedure. The most current information can be found by contacting the lenders directly at the customer service numbers provided below.

*Denotes an affiliated lender. A Wells Fargo Company.