Stafford Loans

Beyond scholarships and grants — which you don’t need to repay — you might qualify for a variety of students loans. Student loans do need to be repaid, so borrow only what you need!

Stafford loans are the most common form of self-help aid for undergraduate, graduate, vocational and professional students. Federal Stafford loans are sponsored by the federal government and administered through the U.S. Department of Education’s Federal Student Aid program. They can be separated into two types:

Federal Stafford Subsidized Loans

• Based on need.
• Fixed interest rate.
• No payments required while the student is in school. (Interest is paid by the federal government while the student is in college, during an approved deferment period and during the six-month grace period.)
• Repayment begins six months after a student leaves college, graduates or drops to less than half-time attendance.

Federal Stafford Unsubsidized Loans

• All students who are at least half-time are eligible.
• Fixed interest rate.
• Interest starts to accrue immediately upon disbursement and continues throughout the grace period and in approved deferment.
• Repayment begins six months after a student leaves college, graduates or drops to less than half-time attendance.
• Interest that is not paid while the student is in school will be added to the principal of the loan when he/she enters repayment.

The amount that can be borrowed depends on college costs, expected family contribution, a student’s year in school, their enrollment status, how much other financial aid they receive and whether they are dependent or independent.