Federal Stafford Loan

Federal Stafford Loans are available to all US citizens and permanent residents. Please refer to the 2008-09 suggested lenders list.

Federal Subsidized Stafford Loans*

The subsidized Stafford loan is a need-based, federally-assisted program that enables eligible graduate students to borrow a maximum of $8,500 each academic year. Interest is subsidized by the federal government while the student is enrolled at least half-time. Repayment of principal and interest begins six months after the student graduates or six months after the student is enrolled less than half time. When the loan is disbursed, a nonrefundable insurance premium of up to 1% may be deducted from the loan principal by the loan guarantor. In addition, an origination fee of up to 3% may be deducted from the loan proceeds by the lender.

Federal Unsubsidized Stafford Loans*

The unsubsidized Stafford loan is similar to the subsidized Stafford loan; however, the interest for the unsubsidized Stafford loan is not subsidized by the federal government. Borrowers may make quarterly interest payments or may have interest capitalized (added to the loan principal). Eligible graduate students may borrow up to a combined maximum total of $20,500 per academic year in Stafford subsidized and unsubsidized loan funds. Repayment of principal and interest begins six months after the student graduates or six months after the student is enrolled less than half time. The same fees that are charged for subsidized federal Stafford loans apply to unsubsidized federal Stafford loans.

* The federal Stafford loan interest rate for new borrowers is fixed at 6.8% Borrowers are required to complete a brief entrance interview and information session before loan disbursement (this requirement may be satisfied online at AES. Students must meet the academic progress guidelines of their program of study to be eligible for any type of federal financial aid.

For more information, please contact:

Financial Aid Office
Carnegie Mellon University
Tepper School of Business
5000 Forbes Avenue
Tepper Room 115/116
Pittsburgh, PA 15213
Phone: (412) 268-1242
Fax: (412) 268-4959