Federal Stafford Loans are low-interest loans for undergraduate and graduate education. These loans are very popular and they are the most common source of college loans. The two different types of Federal Stafford Loans are the Subsidized Stafford Loans and the Unsubsidized Stafford Loans. A student may get one of these or both, depending on household income and the school’s advice. Subsidized Stafford Loans depend on financial need, while Unsubsidized Stafford Loans are open to all students irrespective of income. The government pays the interest while the student is attending school in the case of the Subsidized Stafford Loans; however, with the Unsubsidized Stafford Loans, the student pays the interest. Stafford Loans go by fixed interest rates. Many students use both Unsubsidized and Subsidized Federal Stafford Loans. In order to qualify for a Federal Stafford Loans, a student must be at least a half-time student at a qualifying school. The student must also maintain acceptable academic standing. The student has a six-month grace period after graduation until repayment of the Federal Stafford Loans repayment process begins. The repayment period usually lasts about ten years. Extensions and loan consolidations may be granted. Parents who have been denied the Parent Loans for Undergraduate Students (PLUS) are granted Unsubsidized Stafford Loans. In addition, if Federal Stafford Loans are not enough to put a student through school, a student may look for scholarships or apply for other loans. To apply for the Federal Stafford Loans, a student must complete and submit the Free Application for Federal Student Aid (FAFSA), which can be done online.
» Subsidized Stafford
» Unsubsidized Stafford