Federal Stafford Loans



Federal Stafford Loans are available through William D. Ford Federal Direct Loan ("Direct Loan") Program and Federal Family Education Loan (FFEL) Program . The terms an conditions for both sources are quite similar, but repayment plans and some aspect of the application process might vary.

There are many school participated in Direct Loans program, student will receive their funds directly from U.S. government. While the FFEL loans are provided by banks, credit unions and finance institutions.

Generally these loans can come in 2 forms which is subsidized and unsubsidized. The subsidized loans are low interest loan award to those in financial need, interest will be paid by federal government during school times, grace period and specified loan deferment. For unsubsidized loans are the low interest loan that not based on financial need. Borrower has to bear all interest during school times, grace period and any term extension.

Not all students are eligible for the loans, only the undergraduate, graduate / professional student who is citizen of U.S. and eligible non-citizen are eligible for the loan. And fill in the Free Application For Student Aid (FAFSA) is the 1st step of application. If you are qualified for the loan, you will receive a Master Promissory Note (MPN) , this is a legal agreement you will need to sign back to the lender if you accept the offer.

The repayment of the loan will begin after 6 months grace period, if you wish to further your education you may seek for deferment programs by federal government.

For more student loans information, please check out Student Loans Guide instead of Federal Stafford Loans

or Various Loans Guide for other loans information.

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