What is a federal direct unsubsidized Stafford Loan?
For college students who cannot afford to pay for their education, federal student loans like the direct unsubsidized Stafford Loan provide them with a low-interest, fixed-rate loan with flexible repayment plans that do not begin until after graduation.FactsAlthough some Stafford Loans are supplied by private lenders and backed by the federal government, direct Stafford Loan funds are distributed by the federal government directly to the student’s school.FeaturesThe amount a student can borrow with a Stafford Loan is determined by his grade level, which is calculated by the amount of credit hours he has completed. The amount a senior can borrow under the Stafford Loan program is significantly more than the amount a freshman can borrow.RepaymentStudents who receive loans under the direct loan program may choose between different repayment plans: standard payments made until the loan is paid in full, payments based on income or graduated payments that start out low and increase over time
