federal direct stafford loans

Although not every student qualifies for need-based aid, every student at participating schools is eligible for the Federal Direct Loan Program, which typically offers better interest rates and benefits than many other loans. Credit history is not a factor and payments are not required while the student is enrolled at least half time or during any grace periods or deferments.

• Subsidized Stafford Loans – Awarded to undergraduate students who demonstrate financial need based on the results of the FAFSA. They do not accrue interest while the borrower is enrolled at least half time or when in an eligible deferment.

• Unsubsidized Stafford Loans – Provide additional funding for undergraduate students, graduate and professional students, and to students whose parents are denied a Federal PLUS Loan. Interest begins to accrue from the date the loan is disbursed, but payments are optional while enrolled in school and during any grace period or deferment.