The federal Stafford Student Loan program is the most widely used student loan program for both undergraduate and
graduate students. Borrowing limits, interest rates and terms of repayment are defined by the US Department of Education.
Depending on the lender you use, you may be charged an origination fee for the loan. Interest on these loans is fixed
annually by the federal government. Loans made to students may be subsidized or unsubsidized. The federal government will
pay the interest on a subsidized loan for you while you are in school. These loans are made based on financial need.
Unsubsidized loans can be made to any otherwise qualified student, without regard to financial need. The interest on these
loans may either be paid quarterly or allowed to capitalize.
For the 2008-09 school year, some lenders are adjusting both the fees they will charge and benefits they offer to
Stafford Loans borrowers. When choosing a lender, students should inquire about fees charged at the time the loan is
originated as well as benefits that may be offered to reduce costs during the repayment of a Stafford Loan.
Information about loan options can be found at individual lender websites. In addition, you may also want to consult
the AES (American Education Services) website for additional information about lenders participating in the Keystone
BEST option at http://www.aessuccess.org/
All potentially eligible graduate and undergraduate students are automatically considered and reviewed by the financial
aid office based on the results of the FAFSA.
As a student borrower at the University of Pittsburgh, you are not required to use AES as your guarantee agency. The
Financial Aid Office suggests AES and their participating lenders as an option to Pitt students as AES provides well
established electronic links for loan application, Entrance Interviews, completion of the Master Promissory Note (MPN)
and disbursement of loan funds. You may choose any participating lender and/or any national guarantee agency without
penalty. If you choose an alternative agency and lender, however, it will be your responsibility to insure the completion
of the loan application, Entrance Interview, MPN and to understand the lender’s method of loan disbursement. You can
visit the federal Student Aid website for more information about student loans and choosing a lender at
studentaid.ed.gov.
If you would prefer to use a guarantee agency other than AES, please notify our office in writing, including the name and mailing address of the lender and guarantee agency so that we might best assist you in the loan process.
Annual Loan Limits
These Stafford Loan Annual and Cumulative Limits apply to loans disbursed on or after July 1, 2008.
The following annual loan limits apply based on a student's grade level, dependency status and enrollment in a graduate
or undergraduate program. The annual loan limits apply to the entire twelve month academic year which includes the fall, spring
and summer terms.
| Grade Level |
Credit Requirement |
Stafford Subsidized Limit |
Stafford Unsubsidized Limit |
Extended Unsubsidized Limit (1) |
| First Year |
0-24 |
$3500 |
$2000 |
$4000 |
| Second Year |
25-54 |
$4500 |
$2000 |
$4000 |
| Third Year |
55-84 |
$5500 |
$2000 |
$5000 |
| Fourth Year |
85-114 |
$5500 |
$2000 |
$5000 |
| Fifth Year |
115+ |
$5500 |
$2000 |
$5000 |
| Graduate |
|
$8500 |
$12,000 |
|
| Post-Baccalaureate coursework for Graduate School admission (2) |
|
$5500 |
$6000 |
|
| Teacher Certification only (not in a master's degree program) |
|
$5500 |
$7000 |
|
Annual amounts may be limited based on the Cost of Attendance and other financial aid received.
(1) Extended Stafford is available only to independent students and dependent students whose parents have been denied a PLUS loan.
(2) Student must provide written document from a graduate school to confirm prerequisite status.
Maximum Cumulative Loan Limits
Student borrowing is governed by federally determined maximum limits for all post-secondary education as indicated below:
|
Total Subsidized |
Total Subsidized and Unsubsidized |
| Dependent Undergraduate |
$23,000 |
$31,000 |
| Independent Undergraduate and dependents whose parents are denied a PLUS loan |
$23,000 |
$57,500 |
| Graduate |
$65,500 |
$138,500 |
Entrance Interview
If you are a first time borrower at the University of Pittsburgh, you are required to complete an Entrance Interview before
your loan funds can be disbursed. This requirement can be completed
online.
Master Promissory Note
If you are a new student or have never borrowed through the Stafford Student Loan program, you are required to sign a
Master Promissory Note (MPN). Your MPN will be valid for 10 years while you are enrolled as a student. You will not need
to sign this form each year as long as you remain continuously enrolled.
The Financial Aid Office at the University of Pittsburgh will automatically send your loan eligibility information to
AES/PHEAA. We will assume that you want to borrow the maximum loan for which you are eligible for the both semesters of
the academic year. If you decide not to borrow or want to borrow less than this maximum, you will need to complete a
Loan Change Request and send it to the Financial Aid Office. Once
we receive this form, we will cancel or adjust your loan according to your request. You will be notified in writing that the
change has been made.
AES/PHEAA will be your guarantee agency when you enroll at the University of Pittsburgh and will create an on-line MPN
for you. You do not need to get an MPN from a bank. Use this link to complete your MPN
online.
Please be sure to complete the signing of your MPN on a timely basis as no loan funds can be disbursed to you until the MPN is signed with AES/PHEAA.
Loan Repayment
Repayment of a Stafford Student Loan will begin six months after graduation or any other termination of enrollment. Students
can generally have up to 10 years to repay Stafford Loans. Deferment and forbearance options are available under certain
special circumstances.
If you are graduating or leaving the University of Pittsburgh for other reasons, you are required to complete an Exit
Interview. Complete your Exit Interview
online.
If you do not complete your Exit Interview, you may be denied future University services.
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