Federal Stafford Loans

Stafford Loan program consists of two types of loans: Subsidized Stafford and Unsubsidized Stafford

Subsidized Stafford is interest-free to the borrower during school, grace, and any authorized deferment periods—Unsubsidized Stafford accrues interest from date of disbursement including during school, grace, and any authorized deferment periods. These loans are considered by many to be the basic component of a borrower’s student loan portfolio and the first loan to consider.

Each student is allowed an annual maximum of US$20,500 in Stafford loans: US$8,500 annual maximum in subsidized loans and  $12,000 annual maximum in unsubsidized loans ($20,500 minus the Subsidized Stafford amount for which you actually qualify). At the end of the period, you are allowed an aggregate maximum (undergraduate and graduate Stafford loans)—$138,500.

After graduation, there is a six-month grace period before your loan will go into repayment. Deferment, forbearance, and multiple repayment options available.

Participation in Federal Stafford Loans requires the completion of the FAFSA.