Federal Stafford Loans
Stafford loans (subsidized and unsubdized) are low-interest loans to help eligible undergraduate, graduate, and professional students pay for their education beyond high school.The interest rate to new Stafford loan borrowers is a variable rate that can change annually but cannot exceed 8.25%. Repayment begins six months after either school is completed or enrollment drops below half time. The lender must give borrowers at least five but not more than ten years to repay a Stafford loan unless alternative arrangements are made.
Graduated and income sensitive repayment plans are available. On subsidized Stafford loans, the federal government pays the interest while the student is in school, in grace, and during authorized periods of deferment. On unsubsidized Stafford loans, the student is responsible for paying the interest on the loan. Interest may be paid or added to principal (capitalized).
The Free Application for Federal Student Aid (FAFSA) form must be filed with the federal processing center to begin the loan application process. For more information: www.fafsa.ed.gov.
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