Federal Stafford Loan

(for loans first disbursed after July 1, 2008)

Notice to 2008/09 Borrowers

The Federal Stafford Loan is the largest and most commonly used student loan program. It has both a subsidized and unsubsidized option depending on the student's eligibility. Students may qualify for the subsidized Stafford Loan if they show financial need. The federal government pays the interest on this loan while the student is in school. Students without financial need may borrow under the unsubsidized Stafford Loan program and are fully responsible for all interest charges.

Eligibility: Undergraduate students or graduate and professional students attending at least half time. The FAFSA must be completed in order to determine eligibility.

Interest Rates for the 2009/10 academic year are:

• 5.60% for Stafford subsidized undergraduate and 6.80% for unsubsidized
  
• 6.80% for graduate students Stafford subsidized and unsubsidized

Fees for 2009/10:

• 0.5% origination fee
  
• A 1% default fee will be charged by the guarantor for loans disbursed on or after May 15, 2009
  
• Fees are deducted from the total loan amount disbursed to the school

Loan limits: The borrower limits listed below are effective July 1, 2008.

Borrowing Limits for Dependent Students:
Grade Level 1 - $5,500 (up to $3,500 can be subsidized)
Grade Level 2 - $6,500 (up to $4,500 can be subsidized)
Grade Level 3 & above - $7,500 (up to $5,500 subsidized)

Borrowing Limits for Independent Students:
Grade Level 1 - $9,500 (up to $3,500 subsidized)
Grade Level 2 - $10,500 (up to $4,500 subsidized)
Grade Level 3 & above - $12,500 (up to $5,500 subsidized)
Graduates & Professionals - $20,500 (up to $8,500 subsidized)

Repayment: Repayment does not begin until 6 months after the student graduates, withdraws, or is attending less than half time. The standard repayment term is 10 years. The extended repayment plan is for up to 25
years and is available for borrowers with balances greater than $30,000.

When you borrow from RISLA, you are eligible for these benefits*:

• 0.25% interest rate reduction for automatic payments via ACH

Apply Online & Electronically Sign Your Application

RISLA reserves the right to modify or terminate borrower benefit programs at its discretion and without prior notice.