Student Stafford Loans:

Stafford loans are the largest source of federal student aid. There are two types of Stafford loans: subsidized, for which the government pays the interest while students are in school and during grace and deferment periods; and unsubsidized, for which students pay all the interest on the loan. Students may receive both types of loans at the same time.

The interest rate on new Stafford loans is variable, adjusted annually on July 1, with a cap of 8.25 percent. Origination and insurance fees of up to 4 percent may be deducted from each disbursement.

Your Total Student Loan Balance

Subsidized Stafford Loans:

Subsidized Stafford loans are for students who have demonstrated financial need. The federal government pays the interest on subsidized loans while the student is in college and during grace and deferment periods. To qualify, students must be able to demonstrate financial need as determined in accordance with federal regulations. When determining eligibility, colleges consider all of the student's financial aid resources.

Unsubsidized Stafford Loans:

Unsubsidized Stafford loans are not based on financial need. With unsubsidized loans, students are responsible for paying all the interest on the loan, from the day the loan is first disbursed to when it is paid in full.

Although these loans are made through lending Institutions such as banks and savings and loans, you MUST apply for financial aid, attend a loan workshop every year, and turn in all documents requested before the Financial Aid Office will approve your Stafford Student Loan. Current and former students who are in default or in overpayment status of federal student aid funds will not be permitted to receive federal aid.

Until this review has occurred, DO NOT ASSUME that you will qualify for the Stafford Student Loan.

Students who apply for a Stafford Student Loan in the Spring semester will, if eligible, be awarded a one-semester loan.

  How do I apply?

 What are the requirements?

 Loan Workshop

The loan workshop is designed to instruct the student about their rights and responsibilities as a borrower. Workshops are offered several times each semester. Attendance at a workshop is MANDATORY in order to initiate the loan process.

Spring 2010 Loan Workshop Dates

We do not have summer loans

Choosing a Lender:

Cuesta College sets its own criteria for which lenders will appear on our  lender list. The process is objective and unbiased and it is not necessarily focused solely on cost. Cuesta College tries to consider other factors, such as the quality of customer service, the speed of problem resolution, and counseling activities. For example, most students want 24 hour customer service via toll free phone numbers and online interfaces, but don't realize this until later. Where some students want the security of a larger company, other students want the personal attention of a smaller lending institution. Federal law requires colleges to certify federal education loans without regard to the borrower's choice of lender or the guarantee agency used by the lender. So you can choose any lender, including those that are not on the college's list of recommended lenders.

Federal Stafford Student Loan Programs:

      PROGRAM                                 ANNUAL AWARD RANGE

Unsubsidized                      $3500 Year in Class
                                                 and Upon Request
     Independent                      Up to $6000
     Dependent                         Up to $2000

 Subsidized                          $3500 to $4500

Ombudsman's Office:

The Federal Student Aid Ombudsman of the Department of Education helps resolve disputes and solve other problems with federal student loans.