What are Stafford loans?
Direct and FFEL Stafford loans are either subsidized or unsubsidized. You can receive a subsidized loan and an unsubsidized loan for the same enrollment period. A subsidized loan is awarded on the basis of financial need. You won’t be charged any interest before you begin repayment or during authorized periods of deferment). The federal government “subsidizes” the interest during these periods. An unsubsidized loan is not awarded on the basis of need. You’ll be charged interest from the time the loan is disbursed until it’s paid in full. If you allow the interest to accrue (accumulate) while you’re in school or during other periods of nonpayment, it will be capitalized that is, the interest will be added to the principal amount of your loan, and additional interest will be based on that higher amount.
Stafford Loans are either subsidized or unsubsidized. You can receive a subsidized loan and an unsubsidized loan for the same enrollment period. A subsidized loan is awarded on the basis of financial need. You won’t be charged any interest before you begin repayment or during authorized periods of deferment because the federal government “subsidizes” the interest during these periods. Unlike a subsidized loan, an unsubsidized loan is not based on financial need. You’ll be charged interest from the time the loan is disbursed until it is paid in full. If you allow the interest to accumulate while you are in school or during other periods of nonpayment, it will be capitalized – that is, the interest will be added to the principal amount of your loan, and then additional interest will be based on that higher principal amount.
Most government loans for college expenses are Stafford loans. They used to be called Guaranteed Student Loans (GSLs) or Federal Insured Student Loans (FISLs). A Stafford loan is made directly by the government or by a financial institution to finance a student s college or graduate-school education. The loan may be subsidized (based on financial need) or unsubsidized (available regardless of need). If the Stafford loan is subsidized, the government will pay the interest on it while the student is in school or during any authorized period of deferment. If the Stafford loan is unsubsidized, interest is charged from the time the loan is obtained until it is fully repaid. The student has the option of making the interest payments while still in school, or letting it accumulate and paying it after graduation.
Direct and FFEL Stafford Loans are either subsidized or unsubsidized. You can receive a subsidized loan and an unsubsidized loan for the same enrollment period. A subsidized loan is awarded on the basis of financial need. You won’t be charged any interest before you begin repayment or during authorized periods of deferment). The federal government “subsidizes” the interest during these periods. An unsubsidized loan is not awarded on the basis of need. You’ll be charged interest from the time the loan is disbursed until it’s paid in full. If you allow the interest to accrue (accumulate) while you’re in school or during other periods of nonpayment, it will be capitalized—that is, the interest will be added to the principal amount of your loan, and additional interest will be based on that higher amount. NOTE: If your interest is capitalized, it will increase the amount you have to repay. You can choose to pay the interest as it accumulates; if so, you’ll repay less in the long run. Who c
Stafford Loans – Federal Stafford Loan is a long term loan with a fixed interest rate. The interest rate on these loans for undergraduate students is 6.0% if subsidized (interest paid by the Federal Government) or 6.8% for graduate students and for undergraduates borrowing the unsubsidized loan. Loan repayment begins six months after you complete the program, or drop below half time, which at Pacific Lutheran University, is six credits for undergraduates, four for graduate students. If you are borrowing the Federal Stafford Loan for the first time, you are required to complete an entrance interview prior to receiving your loan proceeds. Loan proceeds are disbursed at the beginning of each semester and the loan is evenly divided over the loan period (number of semesters you will be enrolled at least half time) during the academic year. Loan proceeds are electronically transmitted to the university and posted to your university student account and are applied against university charges f
