ederal Stafford Loans are student loans by the government specifically the department of education. They can be a subsidized student loan or an unsubsidized student loan. They offer low interest rate student loans for anyone applying to study in a US college or university.

There are also Stafford student loans offered by the private banks and financial institutions. However, these stafford loans are offered through the federal family education program. So in a sense, the funds from the student loans are still from the government. They usually offer lower interest rates than federal stafford loans.

APPLY FOR STAFFORD LOAN HERE

Some colleges and universities also have their own student loan programs. These schools are under the federal direct loan program. The government will disburse the funding directly to the school and then to you.

One disadvantages of choosing a school’s student loan program is that you do not have the choice of comparing different lenders and then picking which stafford student loan offer to take.

The interest rates and student loan amounts will differ from school to school so you may want to check with them bef
ore deciding.

There are also 2 types of federal stafford loans : unsubsidized student loan and subsidized student loan.

As the name implies, an unsubsidized student loan is given without the basis of their financial capacity. The interest rates will start once you start college or university. You are allowed to accumulate your interest and it will be added to the principal student loan.

On the other hand, a subsidized student loan is given on the basis of their financial capacity. The student will not be charged interest rates while still schooling. The interest rates will be paid by the government. Not everyone qualifies for subsidized federal stafford loans. You may need to check with your school for the requirements.

By: Ricky Lim  

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The subsidized Stafford loans the government will pay the interest while the Student is in School and the unsubsidized Stafford loans will have the student liable to pay the interest.

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To qualify for an unsubsidized Stafford loan, a student does not need to show financial need. Both types of Stafford loans offer better terms and lower interest rates than private student loans.

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