Loans for Students (Stafford)
Funding a Brighter Future

To help pay college bills, many students and their families need to rely on some form of financial aid — grants and scholarships, public and private loans, work/study, and part-time jobs. One of the single largest sources of education loans is the Federal Family Education Loan Program (FFELP), which offers both Subsidized and Unsubsidized Federal Stafford Loans for qualified students.

And, if you get your Stafford Loan through American Savings Bank, you may qualify for reduced loan fees and interest rates through SMS Hawaii and USA Funds.1

	Highlights Below > Benefits You’ll Receive > Fast Facts > Federal Stafford Loan Choices > How Much May I Borrow? > Interest Rates Table > Save on Fees > How to Apply

Benefits You’ll Receive

• Payments can be made automatically from an American Savings Bank checking account
• Save on Fees
• Low interest rates and fees
• Prepayment can be made without penalty, but customers have up to 10 years to repay
• Convenient monthly statement

	Fast Facts
	Annual Loan Limit Up to $12,500 per year, depending on your grade level and dependency status
	Cummulative Loan Limit Undergraduate dependent students — $31,000 Undergraduate independent students — $57,500 Graduate or professional students — $138,500 Health profession students - $224,000
	Repayment Starts six months after the student ceases to be enrolled at least half time Up to 10 years to repay under most payment options Minimum payment $50
	Interest Starts to accrue the day the loan is disbursed (paid out) Subsidized Stafford Loan — the federal government pays the interest on behalf of the student Unsubsidized Stafford Loan— the student is responsible for paying the interest Subsidized Stafford Loan — 6% fixed rate for undergraduates; 6.8% for graduate and professional students Unsubsidized Stafford Loan — 6.8% fixed rate
	Other Fees2 1% federal default fee 1% federal origination fee

1. Secondary Market Services Corp. Hawaii (SMS Hawaii) is an affiliate of USA Funds®, the nation’s largest education-loan guarantor.
2. Fees are deducted from each loan check.

Federal Stafford Loan Choices

If you are a U.S. citizen (or eligible non-citizen), have a high school diploma or its equivalent, and you plan to attend an eligible school at least half-time, you may be eligible for a Stafford Loan. Graduate and undergraduate students can apply for Stafford Loans, provided they are U.S. citizens, U.S nationals, or eligible non-citizens. Two types of Stafford Loans are available to undergraduate and graduate students: Subsidized and Unsubsidized. Borrowers may receive both Subsidized and Unsubsidized Stafford Loans for the same period.

Subsidized Stafford Loans
If you meet certain financial-need criteria, you may qualify for a Subsidized Federal Stafford Loan. The federal government pays the interest while you’re in school, during the grace period before repayment begins, and of authorized deferment (postponement of loan payments).

Unsubsidized Stafford Loans
If you don’t meet the financial-need criteria to qualify for a Subsidized Stafford Loan, you may apply for an Unsubsidized Stafford Loan. You’re responsible for paying interest that accumulates while you are in school. If you decide to wait, the interest is capitalized (accumulated and added to the principal balance of the loan).

How Much May I Borrow?

You may borrow both Subsidized and Unsubsidized Federal Stafford Loans, but the total of both loans must not exceed the federally set loan limits for the program. Annual loan limits and cumulative maximums are as follows:

	Subsidized Loan Unsubsidized Loan   Dependent Independent   Undergraduate Students First Year $3,500 $5,500* $9,500* Second Year $4,500 $6,500* $10,500* Remaining Years $5,500 $7,500* $12,500*     Graduate or Professional Students Annual Limit $8,500 N/A $20,500* * Minus the amount of any subsidized Federal Stafford loans received.

During your entire post-secondary education, you may borrow up to the following cumulative amounts:

	Dependent undergraduate student $31,000 Independent undergraduate student $57,500 Graduate or professional student $138,500** Health Profession student $224,000 ** Includes any Federal Stafford Loans received as an undergraduate.