What is Direct Stafford Loan?
Direct Stafford Loans, the Federal Direct Loan Program (Direct Loan) William D. Ford, are low-interest loans for eligible students. The loans help cover the cost of higher education in universities with four-year programs, community colleges, or technical schools oriented towards the study of specific officiate. Eligible students can apply for your loan directly to the Department of Education (the Department) of the United States in schools participating in this program.
Stafford Loans, known as Stafford Loans are available to students pursuing their undergraduate or graduate. Such loans are from Stafford Direct Loans granted by the Department of Education. You must pay the Federal Direct Stafford Loan to the Department of Education of the United States.
Direct Stafford Loans include the following types of loans:
A subsidized loan is awarded based on financial need, as has been determined by the information that you submitted on the Free Application for Federal Student Aid (FAFSA, for its acronym in English). If you are eligible for a subsidized Stafford loan, you are not charged interest while you are in school for at least a half-time basis for a period of grace of up to six months after you are no longer enrolled in at at least one hour of "half time" or during certain defined periods of deferment. The Federal government pays (subsidizes) the interest during these periods.
An unsubsidized loan is not awarded based on need. But you still must apply using the FAFSA. For unsubsidized loans, interest will be charged from the time the loan is disbursed until it is fully paid. However, you may choose to defer interest payments while in school and during any period of grace or deferment. However, if you let it accumulate interest during these periods, it will be capitalized. This means that the interest will be added to the principal amount of your loan and additional interest will be based on that higher amount.
Stafford Loans, known as Stafford Loans are available to students pursuing their undergraduate or graduate. Such loans are from Stafford Direct Loans granted by the Department of Education. You must pay the Federal Direct Stafford Loan to the Department of Education of the United States.
Direct Stafford Loans include the following types of loans:
A subsidized loan is awarded based on financial need, as has been determined by the information that you submitted on the Free Application for Federal Student Aid (FAFSA, for its acronym in English). If you are eligible for a subsidized Stafford loan, you are not charged interest while you are in school for at least a half-time basis for a period of grace of up to six months after you are no longer enrolled in at at least one hour of "half time" or during certain defined periods of deferment. The Federal government pays (subsidizes) the interest during these periods.
An unsubsidized loan is not awarded based on need. But you still must apply using the FAFSA. For unsubsidized loans, interest will be charged from the time the loan is disbursed until it is fully paid. However, you may choose to defer interest payments while in school and during any period of grace or deferment. However, if you let it accumulate interest during these periods, it will be capitalized. This means that the interest will be added to the principal amount of your loan and additional interest will be based on that higher amount.
