Federal Stafford Loans
Stafford loans are the great source of college loan funds. There are two types of Federal Stafford loans: Subsidized loans and unsubsidized loans. A subsidized federal stfford loan is awarded on the basis of financial need. If you’re eligible for a subsidized federal staford loan, the government will subsidize (pay) the interest on your loan while you’re in school, for the first six months after you leave school, and if you qualify to have your payments deferred. Depending on your financial need, you may borrow subsidized money for an amount up to the annual loan borrowing limit for your level of study. Ify you qualify for subsidized federal stfford loan, then interest will not accrue on the loan while you are in school at least half-time and during grace and authorized deferment periods. You become responsible for the interest when you leave school and start paying back your loan. In other way, A Unsubsidizes federal Stafford Loan differs from a subsidized federal Stafford Loan in that the student is responsible for all interest that accrues on the unsubsidized Stafford loan from the time of disbursement through repayment of the loan. Students still need to be deemed eligible for unsubsidized Stafford Loans as well however they are usually granted to most students with a maximum borrowing cap. If you qualify for unsubsidized Stafford federal loan you are responsible for all of the interest that accrues on your loan, including while you are in school.