Stafford Subsidized Loan
What Is a Stafford Subsidized Loan?
The Stafford Subsidized Loan Program provides low-interest loans to students who
need help
paying for college.
Like other federal student loans, the Stafford Subsidized Loan provides you with
a number of advantages over typical
private student loans.
- You will receive a low, fixed interest rate. The interest rate for a Stafford
Subsidized Loan during the 20010–2011 academic year is 4.5%.
- While you are attending college full-time, you don't have to repay your loan.
- Your loan won't accumulate interest while you are in college or while it is in
"deferment." A loan is in deferment when the lender permits you, the borrower, to
postpone payments for financial or other reasons.
- Your Stafford Subsidized Loan eligibility is not based on your or your parents'
credit score. Today, there are two Stafford Subsidized Loan Programs: the Federal
Direct Loan Program and the Federal Family Education Loan Program (FFELP). Federal
Direct Loan Program funds come directly from the federal government; FFELP Loans
are administered by participating financial institutions.
Stafford Subsidized Loan Eligibility and Requirements
To be eligible for a Stafford Subsidized Loan, you must be enrolled at least half-time
at a participating college. When
researching colleges,
learn which ones participate in the Stafford Subsidized Loan Program, either by
checking on their website or by contacting a college financial aid administrator
directly.
The Stafford Subsidized Loan is "need-based" student aid, meaning that your eligibility
depends on your financial circumstances, not academic, civic, or athletic achievements.
Remember, most students are eligible for some aid.
Repayment of your Stafford Subsidized Loan begins six months after you graduate
or drop below half-time status.