STAFFORD LOAN
Stafford Loan Program

Direct Stafford Loans from the Direct Loan Program are low-interest loans for eligible students to help pay for their  cost of higher education at a four-year college or university, community college, or trade, career, or technical school. Eligible students borrow directly from the U.S. Department of Education  at participating schools.  Studentís must attend a qualified Title IV school that meets all the Department of Educationís higher education requirements and standards.

Direct Stafford Loans include the following types of loans:

Direct Subsidized Loans-Direct Subsidized Loans are for students with financial need. In order to be eligible for the Subsidized Stafford Loan, you must complete and submit the FAFSA, Free Application for Federal Student Aid, online or through regular mail.  Students that qualify for the Subsidized Stafford loan are not charged interest while youíre in school at least half-time and during grace periods and deferment periods.

Direct Unsubsidized Loans-
Students are not required to demonstrate financial need to receive a Direct Unsubsidized Stafford Loan. Like subsidized loans, your school will determine the amount you can borrow based on the FAFSA application that you submit. Interest accrues (accumulates) on an Unsubsidized Stafford Loan from the time itís first paid out.
Both Subdized and Unsubsidized Stafford Loans are guaranteed by the full faith of the Federal Government, so students are able to borrow at all much lower interest rate when compared to other private student loans.  On the other hand, there are strict eligibility requirements and borrowing limits on Stafford Loans, so not all students will become eligible for this type of loan.
Both undegraduate and graduate students can receive a Stafford Loan to pay for their higher education.  All dependant undergraduate students can receive no more than $31,000 for, while all independent students can receive no more than $57,500, while in school.  Graduate students can receive up to $20,500 per school year with a cap of $138,500 for the entire graduate program.

As you an see, the Stafford Loan Program is a great oprtion if you need additional funding to pay for you education.  Federal Student loans are great, since they offer an opportunity to borrow at a much lower rate compared to other private student loans.  They also offer favorable repayment terms that can be repaid anywhere from 10 to 30 years. 
If you are interested in a Stafford loan, you should complete and submit the FAFSA, which is the official application for the Stafford Loan.  The FAFSA is a free application that determines the financial aid award amount that you are eligible to receive.  The more of a financial need you may have, the higher the chances are that you will receive some type of federsal student aid.







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