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Federal Stafford Loans
All students who meet federal eligibility requirements may borrow up to $20,500 in the Stafford loans. To qualify for a Stafford loan, the student must be:
- Enrolled at least half-time
- A citizen or permanent resident of the United States
- Making satisfactory academic progress if already enrolled in school
- Not in default on a previous federal student loan.
- Males 18-25 must register with Selective Service. Males 26 and over who did not register with Selective Service are ineligible.
Students with financial need (based on the FAFSA) may borrow up to $8,500 in a Stafford subsidized loan each year, but cannot exceed a maximum aggregate limit of $65,000, including undergraduate loans. Borrowers are not responsible for interest that accrues on their subsidized loans while they are in school. Accrued interest is paid by the federal government until the borrower graduates or is no longer enrolled at least half-time. There is a six-month grace period before repayment begins.
The Stafford unsubsidized loan is available to eligible students regardless of financial need (based on the FAFSA). Students who borrow $8,500 in a subsidized Stafford loan may also borrow up to $12,000 in an unsubsidized Stafford loan per year. Students who do not qualify for a subsidized loan, or qualify for less than $8,500, may borrow an unsubsidized Stafford loan up to the limit of $20,500 for both loans per year, but cannot exceed a maximum aggregate unsubsidized limit of $73,000, including undergraduate loans. Borrowers are responsible for the interest that accrues while in school. These interest charges may be paid on a quarterly basis, or may be capitalized to loan principal. There is a six-month grace period before repayment begins.
Interest rates on Stafford loans are set annually by the federal government.
Federal Graduate Plus Loans
Students may be eligible to borrow Graduate Plus Loans up to the cost of attendance (less other aid). The Graduate Plus loan has a fixed interest rate of 8.5%. Applications for Graduate Plus Loans must be made directly with the lender. Apply online to insure timely processing of loan applications.
In order to be eligible for a Graduate Plus Loan, the borrower cannot have an adverse credit history. This is defined as being 90 days or more delinquent on any debt, or having a credit report that shows default, discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a Title IV debt during the five years preceding the date of the credit report). Graduate Plus Loans do not use any kind of debt to income ratio or FICO score, unlike private education loans. Presently, there is no set aggregate limit on the Graduate Plus Loan. Some lenders have a credit repair program, which may help borrowers who are initially denied a Graduate Plus Loan to restore their eligibility.
Federal Perkins Loans
The same federal eligibility requirements apply to Perkins loans. Perkins loans are awarded to students with extreme financial need (based on the FAFSA). Limited Perkins funds are allocated to each school. The maximum loan per student is $6,000 per year. Because of limited funds, the average Perkins loan awarded per year at Brooklyn Law School is $2,000. A student’s maximum aggregate limit is $40,000 including undergraduate loans. The annual interest rate on a Perkins Loan is 5%. There is a nine-month grace period before repayment begins. No interest accrues until this grace period ends.
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