Types of Federal Stafford Loans

Subsidized Stafford Loans

Eligibility for subsidized Stafford loans is based on need. The interest rate for new loans is variable, not to exceed 8.25%. Interest is paid by the federal government while you're in school at least half-time, during the grace period, and during periods of deferment. No payments are required while you're in school, but six months after leaving school, dropping below half-time, or graduating, you must begin making regular monthly payments.

Unsubsidized Stafford Loans

Unsubsidized loans are available to all qualified students at participating schools, regardless of their income. As with subsidized Stafford loans, the interest rate on unsubsidized Stafford loans is variable, capped at 8.25%. Interest payments begin immediately. Although the interest can be deferred and "capitalized", regular loan payments start six months after the borrower ceases to be enrolled at least half-time.