What is the interest rate on the Stafford loan?
There are two types of Stafford Loans that a student might be eligible for: • Subsidized Stafford Loans are awarded to students who demonstrate financial need. Because the U.S. Department of Education (the Department) subsidizes the interest, borrowers are not charged interest while they are enrolled in school at least half time and during grace and deferment periods. Interest Rate Reductions Over a four-year period beginning July 1, 2008, the interest rate on subsidized Stafford Loans made to undergraduate students will be reduced.
