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

Complete the following steps:

• Complete a Stafford Loan Request form:
• 2008-2009 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).
• Fax the completed form to the Financial Aid Office. For instructions, visit www.usc.edu/contactfao.
• 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.
• 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 the red "EdTest" icon in the upper right-hand corner.)
• 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, 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.

Follow the application steps indicated above under “New USC Students” if:

• 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.

Federal Stafford Loan Lenders

Students and families may borrow from any lender.

USC has analyzed all known lender programs of this type offered to USC students. The terms of the analysis included interest rates, fees, repayment duration, and other repayment options. The lender program rankings that resulted from our analysis were reviewed by an independent accounting firm. The use of a lender on the USC list is not required. USC will process your application promptly and accurately regardless of which lender you choose.

The top 10 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

Click here to view the Stafford lender comparison 2008-09

Basic Information

• To be eligible for the Federal Stafford Loan, you must be enrolled at least half-time.
• Your loan is generally disbursed in two equal parts, at the beginning of each semester. Origination and guarantee fees may reduce each disbursement by up to 2.5 percent.
• 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.  For undergraduates, it is currently 6.0 percent for the Subsidized Stafford Loan and 6.8 percent for the Unsubsidized Stafford Loan.  For graduate students, all Subsidized and Unsubsidized Stafford Loans are fixed at 6.8 percent.

• 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.