Federal Stafford Loans
The SUBSIDIZED Stafford Student Loan Program is a federally supported loan made to students who demonstrate financial need. Occidental students may borrow based on their need, year in school and satisfactory academic progress.
There are many lenders in the education marketplace and you are free to select any lender you prefer. Occidental College has carefully chosen the following lenders because they have historically provided excellent service, expedited delivery of loan proceeds, reliability of service for students and their families, and competitive benefits. Neither Occidental College nor any of its employees receive benefits of any kind from lenders due to inclusion on the preferred lender list.
Access Group
All Student Loan
Key Bank
Sallie Mae
US Bank
When a student is enrolled at least half-time, there is no repayment of interest or principal required. Over a four-year period beginning July 1, 2008, the interest rate on subsidized Stafford Loans made to undergraduate students will be reduced. The applicable interest rates for loans made during this period are as follows:
| First disbursement of a loan: | Interest rate on the unpaid balance | |
|---|---|---|
| Made on or after | And made before | |
| July 1. 2006 | July, 1 2008 | 6.8 percent |
| July 1, 2008 | July 1, 2009 | 6.0 percent |
| July 1, 2009 | July 1, 2010 | 5.6 percent |
| July 1, 2010 | July 1, 2011 | 4.5 percent |
| July 1, 2011 | July 1, 2012 | 3.4 percent |
Payment begins at a minimum of $50 per month six months after graduation. Your actual repayment is determined by the total amount borrowed and interest accrued. In general, there is a maximum of 10 years to repay the loan. The maximum amount you can borrow is reflected on your Financial Aid Award Letter. If you have any questions regarding your eligibility, please come to the Office of Financial Aid.
Federal Stafford Loan lenders charge an origination fee of up to 3% and a guarantee fee of up to 1% when the loans are issued. Therefore, a student borrowing $3500 may receive 4% less, disbursed in two installments, one in the fall and one in the spring.
The Federal UNSUBSIDIZED Stafford Student Loan Program is available for students who do not demonstrate financial need. While the terms of the loan are similar to those noted above, interest accrual is immediate. Students may choose to pay interest while in school or have it capitalized into the principal balance. If you have any questions regarding your eligibility, please come to the Office of Financial Aid.
As of July 1, 2006 the interest rate is fixed at 6.8%.
If you have an outstanding Federal Stafford Loan, you should use the same lender to avoid multiple payments after graduation.
Federal Stafford Loan Limits
Annual and grade level limits in the Federal Stafford Loan Program (subsidized and unsubsidized) are as follows:
School Year | Yearly Maximum |
Freshman | $ 3,500* |
Sophomore | $ 4,500* |
Junior | $ 5,500* |
Senior | $ 5,500* |
5th Year Senior | $ 5,500* |
Graduate Student | $ 20,500
|
*Undergraduate students may borrow an additional $2,000 in unsubsidized Stafford Loan upon request.
Maximum aggregate borrowing in the Federal Stafford Loan Program (subsidized and unsubsidized):
Amount | |
Dependent Undergraduates | $ 31,000 |
Dependent Undergraduates whose |
|
Independent Undergraduates | $ 57,500 |
Graduate Students | $ 138,500 |
These loan limits apply to the Stafford Programs only. A student may borrow more than these amounts in any one year (if eligible) and may accumulate more than the aggregates shown by borrowing in different loan programs. These loans are for educational purposes only.