To get a Federal Loan, you need to determine your level of eligibility. Your eligibility is determined by the Department of Education based on information you provide in your FAFSA (Free Application for Federal Student Aid). The schools that you list on your application receive copies of a summary of your FAFSA information in the form of a Student Aid Report (SAR). The schools use the SAR to award your financial aid.

Your SAR will detail your Pell Grant, Federal Perkins Loan, Subsidized Federal Stafford Loan, and Unsubsidized Federal Stafford Loan eligibility.

• Pell Grant: Need-based grant for low-income undergraduate students. 2008 maximum grant is $4,600, but the average grant size is ~$2,600.
• Federal Perkins Loans: Need-based student loan with a fixed interest rate of 5%. Undergraduate loan limits are $4,000/year and graduate loan limits are $6,000/year. Perkins Loans are subsidized, meaning interest does not accrue until borrower begins repayment. Your school is the lender. The average award size is ~$2,200.
• Subsidized Federal Stafford Loans: Need-based student loan with a maximum interest rate of 6.8%. Interest does not accrue until borrower begins repayment. You may select any lender to fill out a Master Promissory Note (MPN). Once the school certifies the loan amount and disbursement dates, the lender sends the funds to your account at the school.
• Unsubsidized Federal Stafford Loans: Need-based student loan with a maximum interest rate of 6.8%. Interest begins accruing at date of check disbursement. You may select any lender to fill out a Master Promissory Note (MPN). Once the school certifies the loan amount and disbursement dates, the lender sends the funds to your account at the school.
• Direct Loans: Your school must elect to participate in the Federal Direct Loan Program for you to receive a Direct Loan. These are Stafford loans, but the Department of Education is your lender and guarantees your loan. You will need to choose a lender to fund your loan.

Below are the annual loan limits for Stafford Loans. Note that the total eligibility amount is dependent on student’s dependent/independent status. Independent Undergraduates may receive both Subsidized and Unsubsidized Federal Stafford Loans. Determine your status