Posts Tagged ‘Stafford Loans’

For StudentsFederal Stafford Loans

The Federal Stafford loan is one of the government loans for the undergraduate, graduate and professional students in the US. This comes under the jurisdiction of the US Department of Education and belongs to the category of educational loans. This loan helps students to cover the costs of higher education obtained in a recognized university, community college or technical school over a period of four years.

The Stafford loan is one of the government loans and are of two types- the Federal Family Education Loan Program that is given by private lenders while the Federal Direct Loan Program that is offered by the Federal Department of Education. It can also be a subsidized or an unsubsidized loan. The loan is subsidized when the student demonstrates a need for the loan. In such as case the government pays for the interest on the loan while the student is in school and the principle amount is deferred. The loan remains unsubsidized when the student does not express a financial need for the loan. In such a case, although the principle amount is deferred, the student must cover for the interest amount himself. Read more…