What Are Stafford Loans?

Stafford Loans are for undergraduate, graduate and professional

degree students. You must be enrolled as at least a half-time* 

student to be eligible for a Stafford Loan. There are two types

of Stafford Loans: subsidized and unsubsidized. You must have

financial need to receive a subsidized Stafford Loan. The U.S.

Department of Education will pay (subsidize) the interest that

accrues on subsidized Stafford Loans during certain periods.

Financial need is not a requirement to obtain an unsubsidized

Stafford Loan. You are responsible for paying the interest that

accrues on unsubsidized Stafford Loans.

Subsidized StaffordLoan

• Available to students who demonstrate financial need.

• Eligible students can borrow a subsidized Stafford Loan

to cover some or all of their need.

• For a subsidized loan, the U.S. Department of Education pays

the interest:

 While you’re in school at least half-time.*

 For the first six months after you leave school

(referred to as a “grace period”).

 During a period of deferment (a postponement of

loan payments).

The amount of your subsidized loan cannot exceed your financial need.

Unsubsidized StaffordLoan

• Does not require students to demonstrate financial need.

• You are responsible for paying interest on unsubsidized loans.

Depending on your financial need, you may receive both

subsidized and unsubsidized loans for the same enrollment

period, but the total amount of these loans may not exceed

the annual loan limit. To find a school suitable for this program use the

free College Matching Wizard Tool.