• Undergraduate and graduate or professional degree students may receive Stafford Loans. Graduate and professional degree students and parents of dependent undergraduate students may receive PLUS Loans.
• You must be enrolled at least half-time at an eligible school in a program leading to a degree or certificate.
• Student loans are borrowed money that must be repaid, with interest, just like car loans, mortgages, and payday loans.
• Student loans cannot be canceled because you didn’t get—or didn’t like—the education you paid for with the loans, didn’t get a job in your field of study or because you’re having financial difficulty.
• Loans are legal obligations, so think about the amount you’ll have to repay before you take out a loan.
• The maximum Stafford Loan amount you can borrow each academic year depends on your academic level in school and whether you are a dependent or independent student.
• Students who demonstrate financial need are eligible for a subsidized Stafford Loan to cover some or all of that need.
• For students who are eligible for a subsidized Stafford Loan, the U.S. Department of Education pays the interest while you’re in school at least half-time, for the first six months after you leave school (your grace period) and during a deferment (a period when loan repayments are postponed).
• Unsubsidized Stafford Loans do not require a student to have financial need. The borrower is responsible for paying all interest on unsubsidized Stafford Loans.
• If you need to find a participating lender, your school has a preferred-lender list. This list is only a starting place when looking for financing. Check the terms and fine print carefully.

Dependency Status

For the 2008–09 academic year, you’re an independent student if at least one of the following applies to you:

• You were born before Jan. 1, 1985.
• You are or will be enrolled in a master’s or doctoral degree program (beyond a bachelor’s degree) at the beginning of the 2008–09 academic year.
• You’re married on the day you apply (even if you are separated but not divorced).
• You have children who receive more than half their support from you.
• You have dependents (other than your children or spouse) who live with you and who receive more than half their support from you at the time you apply and through June 30, 2009.
• Both your parents are deceased, or you are (or were until age 18) a ward or dependent of the court.
• You are currently serving on active duty in the U.S. Armed Forces for purposes other than training.
• You’re a veteran of the U.S. Armed Forces. (A “veteran” includes students who attended a U.S. service academy and were released under a condition other than dishonorable. For more details on who is considered a veteran, see the explanatory notes on the FAFSA.)

If none of these criteria apply to you, you’re a dependent student.

Special circumstances may change your dependency status.  Be sure to check with your financial aid office.