Two Types of Federal Direct Stafford Loans
Subsidized Federal Stafford Loan
A Subsidized Stafford Loan is awarded based on financial need. While the borrower remains in school, the interest on the loan is paid by the federal government.
Unsubsidized Federal Stafford Loan
An Unsubsidized Stafford Loan is not awarded based on financial need. Interest accrues from the date of disbursement until the final payment. The borrower can choose to pay the interest monthly or quarterly while in school and during the grace period or can have the interest capitalized and added to the principal amount of the loan.
- FAFSA – Required for any type of federal loan.
- Entrance Counseling– Required if you are a first time borrower.
- Master Promissory Note – Must have U.S. Department of Education FSA ID.
- Begins 6 months after dropping below half-time status
- Ten year repayment term
- 4.53% fixed interest rate for Subsidized Stafford Loans
- 4.53% fixed interest rate for Unsubsidized Stafford Loans
- 6.08% fixed interest rate for Graduate Unsubsidized Stafford Loans
- .25% interest rate reduction for auto debit
- Provisions available for extended repayment, deferment and cancellation
- No penalties or extra fees for early repayment
- Loan Calculator