|
Federal Stafford Loans are an important form of financial aid for students. Depending on the school, a Stafford Loan may be made either through the Direct Loan Program or through the FFEL Program. Under the Direct Loan Program, the government loans the money to the student. With the FFEL Program, the funding is made available from a private lender, such as a credit union, bank, or another financial institution.
There are two kinds of Federal Stafford Loans:
- Subsidized Federal Stafford Loan - interest due on the loan is paid by the federal government as long as the student is in school, during a 6-month grace period following cessation of at least half-time enrollment, and for any periods of authorized deferment after beginning repayment.
- Unsubsidized Federal Stafford Loan - contains the same features as the Subsidized Federal Stafford Loan including deferments, interest rates, and loan limits. However, the student is responsible for the growth of interest payments while attending school, during periods of authorized deferments, and during grace and repayment periods.
In 2011, dependent undergraduate students can:
- Borrow up to $5,500 if they are a first-year student enrolled in a program of study that runs at least a full academic year.
- Borrow up to $6,500 if the student has completed their first year of study, and the remainder of the program runs at least a full academic year.
- Borrow up to $7,500 if the student has completed two years of study, and the remainder of the program runs at least a full academic year.
|
Home 
Definitions 
