Federal Subsidized Student Loan (Stafford)

This is a need-based loan available to undergraduate students; the federal government subsidizes (pays) the interest on the loan while the student is attending school at least half time. The loan limit for freshmen is $3,500; sophomores may borrow $4,500; and juniors and seniors may borrow $5,500 per year. The interest rate is 6.8 percent in 2013-14 (at the time of this writing, Congress is considering legislation to maintain a 3.4 percent interest rate on this loan). Students must complete the FAFSA, a loan promissory note, entrance counseling and the student refund authorization form.