What are Stafford Loans?

Stafford Loans are low-cost loans that are backed by the federal Government to eligible students.

There are two kinds of Stafford loans:

Subsidized Stafford Loans are based on need and the government pays the interest on these loans while you’re in school at least half time.

Unsubsidized Stafford loans are not based on your need, and you are responsible for the interest while you are in school.

On both subsidized and unsubsidized Stafford loans, you don’t have to make payments until six months after graduation or drop to less than half time status. For unsubsidized Stafford loans, any unpaid interest will be added to your loans balance (capitalized) and you will then pay interest on higher amount.

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Current Rates (Effective July 1, 2005 to June 30, 2006)

Interest Rate
School, Grace and Deferment: 4.70%
(T-Bill + 1.7%)
Repayment: 5.30%
(T-Bill + 2.3%)

CAPPED AT 8.25%

Fees
Origination Fee: 3.0%
Federal Default Fee: 0.0%

Academic Year 2006-2007 (Effective July 1, 2006)

Interest Rate
Fixed Rate: 6.8%

Fees
Origination Fee: 2.0%
Federal Default Fee: 1.0%

Repayment Incentive Program
When you borrow a Stafford Loan through Carnegie Student Loans, you are eligible for the Sallie Mae Cash Back Benefit. You can receive a loan credit or cash back based on 3.3% of the original Stafford loan amount. To qualify, simply make your first 33 monthly payments by the due dates as initially scheduled and sign up on Manage Your Loans^SM at http://www.salliemae.com to receive account information by e-mail.

Lender Code: 833810