Stafford Loans
Subsidized Stafford
Subsidized Stafford loans are loans that are available to students who demonstrate financial need. The Federal Government pays the interest on these loans while the student is in school, during a six-month grace period after the student leaves school, and during authorized periods of loan deferment.
Unsubsidized Stafford
Unsubsidized Stafford loans differ from the subsidized version in the sense that they do not require financial need to qualify, however the Federal Government does NOT pay for the interest while in or out of school. Students have the option of paying the interest each month or allowing it to accrue and be added to the principal amount due. In order to qualify for the Federal Unsubsidized Stafford loan, a student must be a U.S. citizen or eligible non-citizen, must be enrolled at least half-time at a school that is eligible to participate in the Stafford Loan program and must be making suitable academic progress as defined by their school. Additionally, the student may not be in default of a previous federal educational loan, or have a drug offense.
