What are Federal Stafford Loans?
Federal Stafford Loans are a special type of loan made by lending institutions to college students. They can be subsidized or unsubsidized based on your financial need. You must have demonstrated financial need to qualify for a subsidized loan which has the interest paid by the federal government while you are enrolled in school at least half time and during your six month grace period. You are awarded an unsubsidized loan (interest accrues on this loan while you’re in college) if you don’t qualify for a subsidized loan. Some students are actually awarded both – a portion of a loan might be subsidized and the balance unsubsidized.
