Federal Stafford Loans (subsidized and unsubsidized)
There are two types of Federal Stafford Loans:
- Subsidized Federal Stafford Loan
- Awarded on the basis of financial need, which is determined by the information you provide on the FAFSA (Free Application for Federal Student Aid)
- Federal government pays interest on the loan until you begin repayment and during deferment periods
- Unsubsidized Federal Stafford Loan
- Not awarded on the basis of need
- Interest accrues beginning from the date the loan is fully disbursed, though you can choose to pay it later if you are in an in-school, grace, of deferment status
- If you choose to not pay the accruing interest, it will be added to the principal amount of your loan and will increase the amount you have to repay.
- If you pay the interest as it accumulates, you'll repay less in the long run.
Interest rate
Interest rates for Stafford Loans vary depending on the loan type, when you first borrowed the loan, and your degree status (undergraduate or graduate). See the interest rate chart for more information.
Loan limits
Learn more about how much you can borrow.
Loan programs
You can borrow a Federal Stafford Loan under one of two federal student loan programs, each with the same general terms, conditions, interest rates, benefits and loan amounts.
- Federal Family Education Loan (FFEL) Program: Private lenders such as banks, credit unions, and savings and loan associations make the loans. You choose your lender.
- Federal Direct Student Loan Program (FDSLP): The U.S. Government makes loans through schools
Your school usually will participate in one of the programs.
Loan repayment
You have a variety of repayment options for Stafford Loans. Learn more.
Deferment and forbearance
If certain special circumstances arise that make it temporarily difficult for you to make your loan payments, you may qualify for a deferment or forbearance.
Cancellation, forgiveness, and discharge
Learn more about cancellation of Stafford Loans.