What is a Stafford Loan?
Stafford loans are federal loans that assist students in paying for their education and guaranteed by the submission of a FAFSA. There are two types of Stafford loans. Subsidized Stafford loans are loan funds in which the interest is paid by the government while you attend school at least half-time (4 credits per term at GSC.) Unsubsidized Stafford loans are loan funds in which the interest accrues while you attend school. Although all federal loans have the same interest rate and fees; some lenders offer benefits and discounts that may lower the total cost of your loan(s). Benefits can be broken down into two categories: front-end benefits and back-end benefits. Front-end benefits (before and up to disbursement) include: a low or no origination fee, an online application process and/or electronic fund transmission for faster processing and disbursing of your money. Back-end benefits (during repayment) include: a reduced interest rate after a certain number of consecutive on-time payme
Stafford Loans are student loans that are backed by the federal government. There are two types of Stafford Loans — Subsidized and Unsubsidized — both have variable interest rates. Subsidized Stafford Loans are awarded to students based on need, and the government pays the accruing interest while the student is enrolled in school at least half-time, in grace, or in any authorized deferment. Unsubsidized Stafford Loans are not based on need, and the interest on these loans begins to accrue as soon as the funds are disbursed. Repayment of Stafford Loans begins six (6) months after the student graduates, withdraws, or drops below a half-time status.
