Federal Stafford Loan
How To Apply
Stafford Loan applicants must complete a 2026-27 FAFSA and a separate loan application. If you are interested in applying for a Stafford Loan, please contact us.
Note: The loan amount you request will be disbursed in three equal payments, one per term.
Eligibility
Stafford Loans may be awarded to students who are eligible for Federal Student Aid (most domestic students).
Subsidized Stafford Loan
The Subsidized Stafford Loan is a need-based loan. A student's eligibility is based on their federal Student Aid Index (SAI) from the FAFSA. Students may not be eligible for this loan. Caltech will award a Subsidized Stafford Loan to applicants who have more than $200 in federal need.
Unsubsidized Stafford Loan
Unsubsidized Stafford Loans can be awarded regardless of need. A student may receive their full annual borrowing limit as long as their total amount of financial aid for the year, including loans, does not exceed their cost of attendance.
Interest Rate
The interest rates on Stafford loans are now linked to the yield on the 10-year Treasury Note. This means that economic factors will determine the interest rates for loans borrowed in any given year. The interest rates on these loans are fixed, and will not change after the loan has been disbursed. The table below shows the current interest rate, along with rates from the recent past.
| Academic Year | Subsidized Loan | Unsubsidized Loan | Graduate Unsubsidized Loan |
|---|---|---|---|
| 2026-27 | 6.52% | 6.52% | 8.07% |
| 2025-26 | 6.39% | 6.39% | 7.94% |
| 2024-25 | 6.53% | 6.53% | 8.08% |
| 2023-24 | 5.50% | 5.50% | 7.05% |
| 2022-23 | 4.99% | 4.99% | 6.54% |
Stafford loans are also subject to a loan fee, which is a percentage of the loan amount. Loans are assigned a fee percentage based on the date their first disbursement is made.
| First Disbursement Made | Loan Fee |
|---|---|
| Oct. 1, 2020–Sep. 30, 2027 | 1.057% |
| Oct. 1, 2019–Sep. 30, 2020 | 1.059% |
| Oct. 1, 2018–Sep. 30, 2019 | 1.062% |
Borrowing Limit
Undergraduates: The annual borrowing limit varies based on a student's year in school and dependency status.
Dependent Students
| Year in School | Total Eligibility | Maximum Subsidized |
|---|---|---|
| 1st Year | $5,500 | $3,500 |
| 2nd Year | $6,500 | $4,500 |
| 3rd & 4th Year | $7,500 | $5,500 |
| Aggregate | $31,000 | $23,000 |
Independent Students
| Year in School | Total Eligibility | Maximum Subsidized |
|---|---|---|
| 1st Year | $9,500 | $3,500 |
| 2nd Year | $10,500 | $4,500 |
| 3rd & 4th Year | $12,500 | $5,500 |
| Aggregate | $57,500 | $23,000 |
Beginning with the 2026-27 award year, annual loan amounts are prorated based on enrollment intensity. Students enrolled less than full-time will be eligible for a reduced annual loan amount calculated in direct proportion to their credit load relative to full-time enrollment. The existing proration provision for students in their final period of study (described below) remains in effect.
Graduate Students: $20,500 in Unsubsidized Stafford Loans per year.
$20,500 in Unsubsidized Stafford Loans per year.
New borrowers (students who did not have a federal Direct Loan disbursed prior to July 1, 2026): The lifetime aggregate limit for graduate borrowing is $100,000. Graduate PLUS Loans are not available to new borrowers.
Legacy borrowers (students who had a federal Direct Loan disbursed prior to July 1, 2026, and remain continuously enrolled in the same program): You may continue borrowing under prior rules, including access to Graduate PLUS Loans, for up to three additional academic years or until you complete your current program, whichever comes first. The prior aggregate limit of $138,500 applies during this legacy period.
A separate overall lifetime limit of $257,500 applies to all federal student loans combined across undergraduate, graduate, and professional study.
Enrollment of Less Than a Full Academic Year
Stafford Loans are prorated for undergraduate students if their final period of study is less than a full academic year, such as attending only one term and graduating. Proration ensures the student receives the correct portion of their annual loan limit for the shorter enrollment period, as they will not be enrolled for the full academic year.
Less Than Full-Time Enrollment
Beginning with the 2026-27 award year, students enrolled less than full-time at any point during the year will have their annual loan eligibility prorated in proportion to their enrollment level.
Subsidies
Interest does not accrue on Subsidized Stafford Loans while a borrower is enrolled in school at least half-time, during a grace period or during an authorized deferment. The borrower will be responsible for paying interest that accrues while the loan is in repayment or on forbearance.
Interest will accrue on Unsubsidized Loans at all times, though interest will not need to be paid until the grace period is over.
Repayment
Stafford Loans have a grace period of six months, starting when a borrower stops attending school at least half-time. During this grace period, interest does not accrue and no payments are required. Once the grace period is over, the loan will need to be repaid. Stafford Loans are repayable over a period of ten years, though the repayment term may be extended up to 25 years.
Students who borrow federal loans for the first time on or after July 1, 2026 will have access to two repayment plans: the Standard Repayment Plan and a new income-driven Repayment Assistance Plan (RAP). Please visit studentaid.gov for details on repayment options.