What is the Federal Stafford Loan?
The Federal Stafford Loan for undergraduate and graduate students is a low-interest loan with an interest rate that varies annually. The student must complete a Master Promissory Note (MPN). The MPN is a legally binding document which the borrower signs before receiving a loan. It is a promise to repay the loan, and includes information about its terms and conditions. The MPN is a single promissory note with a multi-year feature (serial loan). Only 1 note is required for multiple loans or years at participating schools. The loan can be subsidized or unsubsidized.
Related Questions
- Must a school determine a students eligibility for a subsidized Federal Stafford Loan before determining a parent borrowers eligibility for a Federal PLUS Loan?
- In scenario 1 above, how is the second disbursement of the Federal Stafford Loan treated?
- What is the difference between a Federal Stafford Loan and a Private Loan?
