Federal Stafford Loans

In order to be considered for a Federal Stafford Loan, you must complete the FAFSA.

Federal Stafford Loans are low-interest loans available to eligible students enrolled at least half-time (6 hours) for the fall, spring, and/or summer semester. Stafford loans are either subsidized or unsubsidized.

• "Subsidized" Federal Stafford Loans are available to eligible students with financial need. The interest on these loans is "subsidized" by the federal government while the student is in school at least half-time. Repayment of the loan, both principal and interest will begin six months after graduation or when the student drops below half-time.

• "Unsubsidized" Federal Stafford Loans are available for eligible students without financial need. The student is responsible for paying the interest on the "unsubsidized" loan from the time it is disbursed until it is paid-in-full. If the interest is allowed to accrue while in school or during other periods of nonpayment, it will be capitalized. This means the interest will be added to the principal amount of the loan, and additional interest will be based on that higher amount. A student can choose to pay the interest rather than allow it to accumulate. Repayment of the loan principal will begin six months after graduation or when the student drops below half-time.

Annual Loan Limits for Subsidized and Unsubsidized Stafford Loans
	Dependent Undergraduate Student	Independent Undergraduate Student
Freshman	$3,500	$7,500 - No more than $3,500 may be in subsidized loans
Sophomore	$4,500	$8,500 - No more than $4,500 may be in subsidized loans
Junior/Senior	$5,500	$10,500 - No more than $5,500 may be in subsidized loans
MAXIMUM total Debt from Stafford loans upon Graduation	$23,000	$46,000 - No more than $23,00 may be in subsidized loans

Note: There is a three percent origination fee as well as a possible lender charge of a one percent insurance premium. These fees will be deducted proportionately from each loan disbursement.

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Federal Regulations require all Stafford Loan Borrowers to complete a preloan counseling session, called an ENTRANCE interview, prior to obtaining a Federal Stafford Student Loan. The purpose of the session is to help you to understand your rights and obligations as a student loan borrower. UA Fort Smith offers this preloan counseling through an online service at Mapping Your Future.

If you drop below six (6) hours or do not re-enroll at UA Fort Smith for another semester, it will be necessary for you to complete an EXIT Interview in connection with your Federal Stafford Student Loan.

*If you would prefer to complete your loan counseling by viewing a video, please check with the financial aid office.

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The interest rate on federal Stafford loans is currently 2.82 percent while in school, the lowest rate in history. The interest rate is variable, but cannot exceed 8.25 percent. The following chart shows estimated monthly payments and total interest charges for loans bearing an interest rate of 8.25 percent.

Typical Repayment Plans
Total Loan Payment Amount	Number of Payments	Monthly Charges	Interest Repaid	Total
$2,600	65	$50.00	$628.42	$3,228.42
$4,000	120	$49.06	$1,887.20	$5,887.20
$7,500	120	$91.99	$3,538.80	$11,038.80
$10,000	120	$122.65	$4,718.00	$14,718.00
$15,000	120	$183.98	$7,077.60	$22,077.60

Federal PLUS Loans

The Parent Loan for Undergraduate Students (PLUS) program is available to parents of dependent students who are enrolled in at least six (6) credit hours. The annual limit of a PLUS loan is equal to the Cost of Attendance minus ANY other financial aid the student receives. These loans are made to parents with a good credit history and will have a variable interest rate, not to exceed 9 percent. Repayment of the loan proceeds will begin sixty (60) days after the final loan disbursement. To apply for a PLUS loan, the parent must begin the application process.

Participating Lender List

UA Fort Smith Financial Aid maintains a list of participating lenders. These lenders partner with UA Fort Smith to offer a streamlined process, using the electronic transfer of data and loan funds. This process ensures the best service for our students. You are not limited to using one of these lenders; you are welcome to use a lender of your choice.

Remember, if you have a previous federal student loan, you should continue to use that lender.

If you are a freshman and a first-time borrower, your first disbursement will be delayed thirty calendar days after the first day of the semester.

State Loans

The Student Teacher Assistance Resource Program (STAR) is offered through the Arkansas Department of Higher Education. This program is designed to provide scholarships to students who are pursuing a course of study leading to teacher licensure in designated subject and/or geographic critical shortage areas in the Sate of Arkansas. The STAR scholarship converts to a fully payable loan if the recipient does not attend college on a full-time basis, withdraws from an approved teacher licensure program, or does not fulfill the required teaching obligation. For further information visit the Arkansas Department of Higher Education website.

The Arkansas Technical Careers Student Loan Forgiveness Program was created by ACT 652 of 1999. The program is designed to assist and encourage people to enter and complete technical education programs that lead to employment in high-demand technical fields in Arkansas. High demand career fields are determined annually by the State Board of Workforce Education and Career Opportunities. Students must submit an Intent to Apply form as soon as a major is declared. Further information, application forms and a list of programs are available on the Department of Workforce Education website or by calling (501)682-1699.