The Stafford Loan is the largest and most commonly used student loan program for funding undergraduate and graduate education. Stafford loans are low interest rate loans that are regulated and guaranteed against default by the federal government. They are either subsidized (the government pays the interest while you're in school, during grace and approved deferment periods) or unsubsidized (you pay all the interest, although payments can be deferred until after graduation

To be eligible for a Stafford loan, the student must:
Be a U.S. citizen or national, a U.S. permanent resident or eligible non-citizen, as applicable

Provide his or her valid Social Security Number

Be attending an eligible school, or accepted for enrollment, as at least a half-time student

If already enrolled, maintain satisfactory academic progress in his or her course of study according to the school's published standards

Have at least a high school diploma or the recognized equivalent of a high school diploma or the student must meet one of the following standards: The student must (a) be beyond the age of compulsory school attendance in the state in which the post-secondary school is located and (b) pass an independently administered ability-to-benefit test that has been approved by the Department of Education. Or the student must have - and may self-certify that he or she has - completed a secondary school education in a home school setting that is treated as a home or private school under applicablestate law.

Not be serving in a medical internship or residency program required of doctors of medicine, osteopathy and optometry. Students who are serving in an internship as part of any other degree program (e.g., a dental or veterinary internship) are considered eligible students for purposes of Stafford loans and PLUS loans, as applicable

Stafford Loans for Undergraduate Students
There are two different types of Stafford Loans, subsidized and unsubsidized. Subsidized Stafford Loans are awarded based on financial need. You will not be charged interest before you begin repayment or during periods of deferment. The federal government "subsidizes" the interest during these times. Unsubsidized Stafford Loans are not awarded based on financial needs. Any eligible student can take out unsubsidized Stafford Loans. You will be charged interest from the time the loan is disbursed, to the time the loan is repaid in full.

Borrowing
If your school is a Direct Loan school, your school will provide all the necessary instructions for you to obtain your Stafford loan. you will need to choose a lender for your loan. Note: Your school may present to you a list of lenders from which to choose your loan. However, you are free to choose any lender that participates in the Studentequityloans program. The "Preferred Lender List" is simply provided to you as a convenience as hundreds of lenders offer Stafford loans. Be sure to research your options. While the terms and rates are set by the federal government, lenders will sometimes offer an incentive that can reduce the cost of borrowing.

Stafford Loan Benefits
When financing your education, a Stafford loan should be your first choice once you have already collected scholarships and grants. Stafford loans are fixed rate federal student loans that are guaranteed by the government. They can be used to pay for tuition, housing, books and more. Stafford loans have a number of great benefits all designed to help make paying for college more affordable.