Basics Of Federal Stafford Loans

There are two types of Federal Stafford loans that you can take out: subsidized and unsubsidized. These student loans are given out directly from the government, which cuts out the middle man of a lender. Subsidized federal Stafford loans are based on financial need, and the interest accrued on the loans is paid off by the federal government while you are in school. The other loan, the unsubsidized federal student loan, is not based on financial need and you are responsible for the interest collected on the loan.

For either type of Stafford loan, there are certain requirements that must be met to be eligible. Many students that apply for federal Stafford loans under these conditions are awarded plenty of money to get through college. There are flexible payment options that make it easy to plan out your repayment.

Federal Stafford loans are beneficial in that there are little penalties that come with them. In order to be eligible for these types of loans, you do not need a credit check done, but you cannot have any defaulted student loans out. In general, they are similar to other student loans with a 6 month grace period, payment options, and the option for consolidation.