What is a Federal Stafford loan? The Stafford loan is a low-interest loan designed to provide students with additional funds to assist in paying for education costs not covered by other sources of financial aid. The interest rates are fixed at 6.0%, effective July 1, 2008.
Are all Stafford loans the same? There are two types of Stafford loans: subsidized and unsubsidized. The subsidized loan is based on financial need as determined by the Free Application for Federal Student Aid (FAFSA). The federal government pays the interest while you are in school, during your grace period, and during any authorized deferment periods. The unsubsidized loan is not based on need, which means students at any income level can qualify. Interest will accrue while in school, during your grace period, and during any authorized deferment periods. The student has the option of paying the interest while in school.
Am I eligible for a Stafford loan? To qualify, you must first complete the FAFSA and be enrolled at least half-time in an approved institution. The FAFSA determines your need for federal financial aid, including Stafford loans. The Financial Aid Office determines and certifies your eligibility for the loan amount.
When do these loans go into repayment? Repayment begins 6 months after you graduate, leave school, or cease to be enrolled at least half-time.
How do I apply for a Stafford loan? In order to receive a Stafford loan, you will need to complete the on-line Master Promissory Note and the Entrance Interview. To begin this process, click on “Apply Now” at the bottom of this page.