Financial Aid Home > Frequently Asked Questions > FAQ: How do Stafford Loans work?

Q: What is the most popular form of financial aid at Fielding Graduate University?
A: Approximately 75% of students participate in the Federal Stafford Loan Program.

Q: How much can I borrow through the Stafford Loan Program?
A: You may qualify to borrow up to $18,500 annually. Clinical Psychology students may qualify for more; please contact the Fielding Graduate Financial Aid Office to learn more about increased Stafford loan limits for Clinical Psychology students.

Q: I've heard that Stafford Loans can be subsidized or unsubsidized. What's the difference?
A: Subsidized loans are dependent on economic need. Students can qualify for up to $8,500 annually in subsidized loans. You do not pay the interest on subsidized loans while they are in deferment or grace. Unsubsidized loans are not based on economic need. Students can qualify for up to $18,500. If a student receives $8,500 in subsidized loans, they can only qualify for $10,000 in unsubsidized loans. You do pay or accrue the interest on unsubsidized loans from the beginning of the loan period.

Q: How do I choose a lender?
A: The federal rules under which the Federal Stafford Loan Program operates permit many organizations, (banks, financial institutions, universities, etc.) to participate in the program as lenders. That means that you have many choices of lenders for a Federal Stafford Loan. Each organization is required to follow the same rules and regulations as established by the Federal Stafford Loan Program. The only differences in organizations come in the repayment incentives and customer service.

Q: Does each lending organization have the same interest rate for the Stafford Loan Program?
A: Yes. The federal government sets the interest rates on July 1st of each year. These rates are valid for 12 months. The interest rate is reset every July 1st. The interest rate is capped at 8.25%.

Q: I received my award letter and now think I borrowed too much. Can I reduce my award?
A: Call the Financial Aid Office as soon as possible and return the signed award letter noting which student loan awards you wish to reduce or cancel. Note: If your loan has been disbursed and you have received your refund check, you must return the disbursement back to the Financial Aid Office, so that it may be sent back to your lender, on your behalf.

Q: When will I receive my loans?
A: All loans are disbursed at the beginning of each trimester. Most Federal Stafford loans are disbursed in three equal disbursements. Your loan will be applied to your student account and any excess funds will be refunded to you in the form of a check. Most refunds are mailed out during the first three weeks of the trimester.

Q: Does the loan disbursement come to me directly?
A: No. The U.S. Department of Education mandates that the loan disbursements come to the school first. The Financial Aid Office must verify the student's enrollment status and academic standing.

Q: Are there other forms of aid?
A: Students who are not eligible for the Federal Stafford Loan Program can investigate Alternative Student loans, i.e. private educational loans. Alternative Student loans, unlike Federal Stafford Loans, are based on your credit rating.