Federal Subsidized Stafford Loan

A dependent student may obtain a loan up to $3,500.00 for the first academic year and $4,500.00 for the second academic year (students who have completed 30 credit hours or more), based on documented need. Cumulative loan limits for a four-year degree program are $23,000.00.

An independentstudent may obtain a loan up to $3,500.00 for the first academic year and $4,500.00 for the second academic year (students who have completed 30 credit hours or more), based on documented need. Cumulative loan limits for a four-year degree program are $23,000.00.

Dependent students whose parents have not been denied a Plus Loan and independent students whose parents have been denied a Plus Loan may be eligible for further unsubsidized loans.

Total subsidized/unsubsidized amounts for dependent students is $5,500.00 for the freshman year, $6,500.00 for the sophomore year, or a cumulative loan limit of $31,000.00 for an entire four-year degree program.

Total subsidized/unsubsidized amounts for independent students is $9,500.00 for the freshman year, $10,500.00 for the sophomore year, or a cumulative loan limit of $57,500.00 for an entire four-year degree program.

The loan is secured from a private lending institution, i.e., a bank, a savings and loan, or credit union. There is no loan payment or interest charged while the student remains in school at least half-time. Students must begin repaying the loan at an annual variable rate based on a 91 day T-Bill +3.10%, capped at 8.25%, six months after they graduate, leave school, or are enrolled less than half-time. These loans are guaranteed by various agencies and reinsured by the federal government. Students are required to apply through a federally approved need analysis system to determine their eligibility and have a complete financial aid file prior to having a Stafford Loan processed by the Financial Aid Office.

For Information on how to apply for this grant please contact the Director of Financial Aid at Otero Junior College.