Stafford Student Loans
Federal Family Education Loan Programs (FFELP)

Subsidized: The Subsidized Stafford Loan is based on a student’s financial need eligibility as determined by the FAFSA. The federal government pays all of the interest which accrues on your subsidized loan during the following periods:

• During your in-school deferment period while enrolled at least half-time;
• During your six-month grace period after graduating or dropping to less than half-time;
• During authorized deferment periods.

Unsubsidized: The Unsubsidized Stafford Loan is a non-need based federal loan program. Eligibility still must be determined based on your total cost of attendance and FAFSA. The government does not pay the interest on your behalf during in-school, grace and deferment periods. You will have the option of making interest payments on the loan while in school or allowing that interest to accrue and capitalize to your loan.

Interest Rates:

Interest rates are set by the US Department of Education. Effective July 1, 2006 the interest rate for the Stafford Loans is 6.8%.  This interest rate is fixed for the life of the loan.  

How much is available?

Before taking on a student loan, think carefully of the effect of debt on your future ministry. You do not know where the Lord may call you to serve.

Based on federal guidelines, up to $8,500 is available in Subsidized and up to an additional $12,000 is available in Unsubsidized. Concordia Seminary recommends that you borrow no more than $8,500 per academic year.  You may request the amount that you need and the Financial Aid Office will then certify the loan for the amount that you are eligible to receive. Please keep in mind, that you may request an additional amount later in the school year if you have an unexpected expense or have found that you need more than your original request (assuming that you have not maxed out your eligibility).  Also, you may reduce or cancel a disbursement if you have received additional funding that you had not originally expected.

When will the loan be disbursed?

Typically, all Stafford loans are disbursed in three equal payments. You will receive each disbursement the first week of Fall, Winter, and Spring Quarters. If you would like to include Summer Quarter in your loan and have four equal disbursements, be sure to indicate that you want to include summer. You may also complete an additional Loan Request form for Summer Quarter if you have not already utilized the full $20,500 in Stafford Loans.

You must be enrolled at least half-time for each quarter that you borrow a student loan.

You will be notified through Campus Mail when your loan disbursement has applied to your student account. If you have a credit balance with the seminary, you may go to the Accounting Office to complete a Check Request Form. This will allow you to withdraw these funds to use toward other educational expenses.

Loan Changes

Sometimes, the amount of other financial assistance may change your eligibility for student loans. We must reduce your loans accordingly if an over-award exists. You will be notified through Campus Mail if this occurs.

APPLY FOR A STAFFORD STUDENT LOAN NOW