A Stafford Loan is one particular type of Federal student loan offered to students enrolled in institutions of higher education to help finance the cost of school. These loans are guaranteed by the US Government and, therefore, are offered at lower rates than a student borrower would typically receive elsewhere.
There are two different types of Stafford Loans, subsidized and unsubsidized.
Subsidized Stafford Loans are awarded based on financial need. You will not be charged interest before you begin repayment or during periods of deferment. The federal government “subsidizes” the interest during these times.
Unsubsidized Stafford Loans are not awarded based on financial needs. Any eligible student can take out unsubsidized Stafford loans. You will be charged interest from the time the loan is disbursed, to the time the loan is repaid in full.
To meet eligibility requirements to receive a Stafford Loan:
» You must have submitted a FAFSA (Free Application for Federal Student Aid)
» You must have financial need as determined by your school.
» You must be a U.S. citizen, permanent resident, or eligible non-citizen.
» You must be enrolled at least half-time.
» You must not be in default on any education loan.
Some commonly asked questions about the Stafford Loan:
When do I receive the Stafford Loan funds?
In most cases, this loan is disbursed in two installments – fall semester and winter semester. Your loan money will be used to pay your tuition and fees. If loan money remains, your school will credit your account or pay you directly. Lenders send the Stafford Loan funds directly to your school.
How much can I receive?
In subsidized funds, undergraduates may borrow up to $2,625 as a freshman, $3,500 as a sophomore and $5,500 as a junior or senior.
What are the Stafford Loan interest rates?
Stafford Loans issued after July 1, 2006 have a fixed interest rate of 6.8% whether a student is in school or in repayment, for both subsidized student loans and unsubsidized student loans.
What are the repayment options for a Stafford Loan?
The normal repayment term for this loan is 10 years. You may be able to extend repayment by deferring or consolidating your loans.
Do I have to make payments while in school?
No, you do not have to begin payments on subsidized Stafford loans until 6 months after your graduation.
What if I have bad credit?
The Stafford loan is need based, not credit based. Unless you have a defaulted Federal student loan, your credit will have no bearing on whether or not you receive the Stafford loan.
How do I apply?
Simple! Visit this website (be sure you are near a printer to successfully complete the application): | 
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