Federal Stafford loans come in two flavors: subsidized (the government pays the interest while you’re in school) and unsubsidized (you pay the interest yourself).
Although most students won’t begin making these payments until after graduation, Stafford loans come in two flavors: subsidized (the government pays the interest while you’re in school) and unsubsidized (you pay all the interest). Unsubsidized Stafford loans increase the loan size and total cost of the loan by adding the accrued interest to the loan balance.
The Free Application for Federal Student Aid (FAFSA) must be completed in order to qualify for both subsidized and unsubsidized Stafford loans. You must be able to show financial need in order to be approved for a Stafford loan that is subsidized. All students are eligible for the unsubsidized Stafford loan, regardless of need.
Graduate and professional students are only qualified for unsubsidized Stafford loans as of July 1, 2012.
Generally, repayment on all Stafford loans starts six months after you graduate or stop enrolled at least half-time. Alternative repayment terms are available, but the typical repayment period is 10 years from the date of your first payment. If you have trouble making your payment or if you want to make lower monthly payments over a longer period of time, you might want to look into alternative repayment plans.
Stafford loan annual and lifetime limits differ significantly depending on the student’s status (dependent or independent) and year of study (freshman versus graduate or medical student). The U. S. The most recent information on Stafford loan limits can be found on the Department of Education’s Federal Student Aid website.
Stafford Loans are made under the Federal Direct Loan Program. They were also made under the Federal Family Education Loan Program (FFELP) prior to July 2010, but no new FFELP loans are being made at this time.
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FAQ
Are Stafford loans considered federal loans?
Federal Stafford loans come in two flavors: subsidized, where the government pays the interest while you’re in school, and unsubsidized, where you are responsible for paying the entire interest.
Are Stafford loans eligible for loan forgiveness?
If the other requirements (like income) are also satisfied, then your Stafford, Consolidation, Graduate PLUS, or Parent PLUS loan should be eligible for relief under Biden’s one-time student loan forgiveness initiative.
Do you have to pay back federal Stafford loan?
Your federal student loan enters repayment when you graduate, drop below half-time enrollment, or stop attending school. However, you have a six-month grace period prior to being required to start making regular payments if you have a Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loan.
Are Navient Stafford loans Federal?
The United States no longer uses Navient to service its federal loans. S. Department of Education. In January 2022, these loans were changed over to a new servicer, Aidvantage.