Maximum Amount - Graduate and professional students may borrow up to $8500 per academic year to an aggregate maximum amount of $65,500 including all undergraduate Stafford/GSL loans. A loan may not exceed the cost of education less resources.
Interest - The interest rate, currently, is fixed at 6.8%. Interest begins to accrue from the moment the funds are disbursed, however, the interest is paid by the Federal Government during periods of Grace and Deferment.
Grace Period - Students have a six month grace period after they are no longer enrolled half-time at an eligible institution before repayment begins unless the six month grace period has already been used by the student.
Deferment - Repayment of the loan can be deferred for students who meet any of the following conditions:
- enrolled at least half-time at an eligible institution,
- pursuing a course of study in an approved graduate fellowship program or approved rehabilitation training program for disabled individuals excluding a medical internship or residency program,
- is unable to find full-time employment (maximum of 3 years),
- is suffering from an economic hardship (maximum of 3 years),
- is engaged in service eligible for loan cancellation (e.g. full-time nurse or medical technician, full-time employee of a public or private nonprofit child or family service agency who is providing or supervising the provision of services to high-risk children and their families from low-income communities).
Note: Students who have an outstanding balance on a Stafford/GSL Loan as of July 1, 1993, will retain the deferments originally provided for in their promissory note which includes a two-year residency deferment.
Insurance/Guarantee Fee - An origination fee(maximum 2%) if applicable, will be deducted from each disbursement. The University of Toledo Foundation's Stafford Loan program pays the origination fee for the borrower. A guarantee fee (1%) is waived by most guarantors.
Disbursement - Funds are electronically transferred to the school from the lender/servicer in equal installments based on the number of semester terms in the loan period. The Student Financial Aid Office will verify the student's eligibility upon receipt of the funds. A notice is sent to the student informing him/her that the funds have been received and that they will be disbursed to the student's account by the Bursar's Office. First-time borrowers at the University are required to attend an entrance interview prior to releasing the first disbursement.
Refunds - Students eligible for a refund of excess proceeds will be refunded within 14 days from the date a credit balance occurs
on the student's account - generally 14 days from the date of disbursement of the funds.
Repayment - Repayment begins six months after the student is no longer enrolled at least half-time and may be made up to a ten-year period. Several repayment options are available to students.