Stafford Loans
If you're a half-time or full-time student attending an eligible institution, Stafford Loans could be right for you!
NOTE: HSBC will discontinue its Federal Family Education Loan program and cease making new loans effective May 31, 2008. No new loans will be processed for the 08/09 academic year.
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Stafford Subsidized Loans - are awarded on the basis of financial need. You will not be charged any interest before you begin repayment or during authorized periods of deferment.
Repayment of the Stafford Loans begin six months after graduation, or six months after you cease to maintain half-time or greater student status, or immediately when your deferment period ends. You can take as long as ten years to repay with minimum monthly payments as low as $50.
Stafford Unsubsidized Loans - are not need based and you will be charged interest from the time the loan is disbursed until it's paid in full. You can choose to capitalize the interest while in-school.
Repayment of the Stafford Loans begin six months after graduation, or six months after you cease to maintain half-time or greater student status, or immediately when your deferment period ends. You can take as long as ten years to repay with minimum monthly payments as low as $50.
Rates
Effective for all loans disbursed on or after July 1, 2006, the interest rate is fixed at 6.80%. The interest rate for loans first disbursed between July 1, 1998 and Jun 30, 2006 are variable and subject to change annually on July 1. While in school, grace or deferment, the current rate is equal to the 91-day US Treasury bill plus 1.70% for a current rate of 6.62% as of July 1, 2007. While in repayment, the current rate is equal to the 91-day US Treasury bill plus 2.3% for a current rate of 7.22% as of July 1, 2007.
Benefits
When your loan enters repayment you may be eligible to receive:
- 0.25% interest rate reduction when monthly payments of principal and interest are deducted automatically from a checking or savings account.
- Effective for new loans disbursed on/after January 1, 2008 you may be eligible to receive 0.10% interest rate reduction after making 3 initial, consecutive, on-time payments of principal and interest.
Note: HSBC reserves the right to discontinue or modify these benefit programs at any time.
Maximums
| Subsidized / Unsubsidized3 | Additional Unsubsidized4 | |
|---|---|---|
| 1st year undergraduate2 | $3,500 | $4,000 |
|
|
$4,500 | $4,000 |
| 3rd year and beyond undergraduate2 | $5,500 | $5,000 |
| Graduate / Professional1 | $8,500 | $12,000 |
| Dependency Status | Maximum Subsidized & Unsubsidized |
|---|---|
| Dependent Undergraduate | $23,000 |
|
Independent Undergraduate (and dependents whose parents are denied under the PLUS program) |
$46,000 |
|
|
$138,5005 |
1 Certain health profession students may qualify for higher limits.
2 All undergraduate annual loan limits are subject to proration.
3 If the borrower does not have financial need for a subsidized Stafford loan using expected family contribution (EFC), or has reached the aggregate limit in subsidized Stafford loans, the borrower may receive up to this entire amount in unsubsidized Stafford loans assuming he or she has remaining eligibility for the loan.
4 Independent Undergraduates, dependents whose parents are denied under the Parent PLUS program or Graduate/Professional students.
5 No more than $65,500 may be from the Subsidized Stafford loan program.
