Direct Stafford Loans
- Direct Stafford Loan Overview
- Direct Stafford Loan Eligibility
- How to Apply for a Direct Stafford Loan
Direct Stafford Loans are available to undergraduate and graduate students through the federal government. These loans have a fixed interest rate.
There are two categories of Direct Stafford Loans: subsidized and unsubsidized. What is the primary difference between the two?
- Subsidized Direct Stafford Loans—The government pays the interest at different points during the life of the loan (for example, while you are in school).
- Unsubsidized Direct Stafford Loans—You, the borrower, pay the interest, from the day your school first receives your loan funds until you pay off the loan in full.
(For more details about the difference between subsidized and unsubsidized loans, visit YouCanDealWithIt.com.)
Each year, the maximum amount of your Direct Stafford Loan (known as the "annual loan limit") is based on your year in school. Annual loan limits are lower for freshmen than for upper classmen and graduate students.
- Subsidized Direct Stafford Loans—Your loan amount is based on your financial need.
- Unsubsidized Direct Stafford Loans—Your loan amount is based on your unmet financial need (the school's cost of attendance minus any student aid you receive).
How to Apply
Direct Stafford Loans are available only through the federal government. Please visit Student Aid on the Web for instructions on how to apply.