Stafford Loan

Loans provide students with an opportunity to invest in their future. The Federal Stafford Loan Program is administered by guarantee agencies, which, with the backing of the federal government, insure lenders against loss should a borrower default on the loan. There are two basic types of Stafford loans: subsidized and unsubsidized. Both have the same fixed interest rate, which is determined each year on July 1st. Please contact your lender for the current rate. Effective July 1st 2009 Federal Subsidized Stafford Loans will have a fixed interest rate of 5.6% for undergraduates and 6.8% for graduates, and Federal Unsubsidized Stafford loans will have a fixed interest rate of 6.8%

Subsidized Loans
Government pays the interest to the lender while the student is in the deferment period.

Once in repayment, the student is responsible for paying the interest on the loan as well as the principal amount borrowed.

The student’s cost of attendance must exceed his/her Expected Family Contribution (EFC) to be eligible for “need-based” aid (such as grants, scholarships and subsidized loans).

The EFC is based on information collected from the Free Application for Federal Student Aid (FAFSA). The total amount of the subsidized loan combined with other “need-based” aid cannot exceed the student’s “financial need.”

Unsubsidized Loans
Government does not pay the interest on behalf of the student.

Instead, the borrower is responsible for all the interest that accrues and capitalizes from the time the loan disburses.

Independent students may be eligible for greater unsubsidized amounts than dependent students. See our page on Borrowing Limits.

Though it is non-need based aid, the amount of the unsubsidized loan combined with other aid cannot exceed the total estimated cost of attendance.

Stafford Loan Eligibility

Students Must:

Students Cannot:

File the FAFSA. Be a U.S. citizen or eligible non-citizen. Have a high school diploma or equivalent. Be classified as degree seeking at UCF in an eligible program. Enroll for at least half-time at UCF in UCF classes at time of disbursement. For more information reguarding half-time enrollment please view our Program Eligibility Chart. Maintain UCF’s Standards for Satisfactory Academic Progress (SAP). Complete verification (if selected). Complete the online Loan Entrance Interview. Satisfy all selective service requirements.

Default on any educational loan or owe repayment on a federal grant at this or any other institution. Borrow in excess of federal loan limits. Receive a Stafford loan while participating in the SOAR program and receiving the Minority Education Enhancement Grant.

Borrowing Limits

The total combined amounts a student may borrow in subsidized and unsubsidized Stafford loans may not exceed the annual loan limits or aggregate limits, which are specified in federal regulations. Please view our Borrowing Limits page for more detail (click here)

How to Apply

1. File the FAFSA for the current aid year.

2. Complete and submit the Federal Stafford Loan Request Form.
If a chosen lender is not on the UCF Preferred Lender List, email finaid@mail.ucf.edu to obtain the proper form. It is the student’s responsibility to research the guarantee agency, lender code and contact information of lenders NOT on the UCF Preferred Lender List.

3. First time borrowers at UCF must complete the online Entrance Interview.

4. Complete all outstanding checklist items on myUCF To Do List. Verification must be completed before the loan can be awarded.

5. Once your loan has been awarded, you may check the status of your loan from the My Loan Web site at http://finaid.ucf.edu/loans/my_loans.html. Please be advised that first time borrowers must sign a Master Promissory Note (MPN). For instructions on how to access the MPN, please visit http://finaid.ucf.edu/loans/goto_mpn.htm.

Disbursement of Loan

Any outstanding debts owed to the university will be deducted prior to processing a refund.

Once the school receives the loan money, all compliances are checked again to ensure that the borrower is still eligible for the amount awarded. The school may reduce or cancel the loan accordingly.

Some checklist items may be added to the MyUCF Financial Aid To Do List after the loan is awarded. Check your MyUCF account frequently and complete all outstanding items.

If a chosen lender is not on the UCF Preferred Lender List nor guaranteed by the State of Florida, a manual process is involved, which will delay your funds. Another means of funding is recommended until the loan is available. It will be the student’s responsibility to ensure that the lender receives the necessary documentation to process the loan.

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