Getting a Stafford Loan

Everyone wants to join a good university or college where all their interests will be met. However, with the cost of tuition continuing to rise, a lot of people find that such learning institutions are too costly and can’t be afforded. The great news is that there are now affordable and reliable options that can help support many of the costs associated with going back to school. Loans such as the Stafford Loan have changed the lives of many people who take the time to apply for it.

What are Stafford Loans?

Stafford loans are federally funded loans for students who want to achieve higher education. These are provided to many students through the Department of Education. Such loans are available at many Title-IV-eligible institutions. The limits for a Stafford loan may actually vary according to type – unsubsidized and subsidized, dependency status and grade level.

Subsidized and Unsubsidized Loans

Subsidized Stafford Loans are awarded according to the student’s financial need. The students do not need to pay for interest during the time of deferment or before the start of repayment. The government will subsidize the interest during those times. It is available to all undergraduates. 

Unsubsidized Stafford Loans loans aren’t awarded based on the student’s financial need. They work like typical loans. All eligible students can apply for these types of loans. The interest accrues from the moment the loan is obtained until the time the loan is repaid in full.

How Much Can I Borrow?

Any student can borrow what is needed to meet his or her personal budget or overall cost of attendance, which will be determined by their learning institution. This typically includes costs for books, supplies, tuition fees as well as an allowance for room and board.


In order for you to be eligible for Stafford loans, you must:

  • Have financial need to be determined by the school. This requirements is for the Subsidized Stafford loans only
  • Submit the FAFSA or Free Application for Federal Student Aid
  • Plan or be enrolled at least half-time
  • Be a permanent residents of the United States, US Citizen, US national or eligible non-citizen
  • Be accepted for enrollment at a Title-IV-eligible school

Once you are able to complete the FAFSA, you’ll be automatically considered for the loan, apart from other federal student aid programs that you have applied for.

Stafford Loans Repayment

The repayment for the Stafford loans starts 6 months after you drop below half-time status or after you graduate. 

Here are a few recommendations to consider when determining if financing school through the Stafford Loan Program is right for you.

  • Check your borrowing history that can be accessed on the National Student Loan Data System
  • Understand all the risks of defaulting on Stafford loans
  • Explore and discover loan repayment plans as well as calculators

Stafford Loans are one of the most affordable student loans that you can to obtain higher education. They are typically lower interest rates, partially or completely subsidized, and have less strict qualification requirements than many conventional loans.

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