Federal Family Education Loan Program Many options are available for families and students to help pay for education beyond high school. The federal government backs the loans and pays the interest on some loans while students are enrolled in school. TG is a public nonprofit corporation established by federal and state law. Unsubsidized Federal Stafford Loans , for student borrowers, are not based on financial need. Unsubsidized Stafford Loans are for students who do not qualify for a subsidized loan or to supplement a student's subsidized loan.
Borrowers are responsible for all of the interest on unsubsidized loans.
Federal PLUS Loans are for parents of dependent undergraduate students. Federal PLUS Loans allow parents to help meet the cost of attendance and can be used to pay the federal government's Expected Family Contribution, which is the amount of money the federal government determines that the parents and student are able to provide each year for the student's educational costs. PLUS Loan borrowers can apply by completing a Federal PLUS Loan Application and Promissory Note and submitting it to the student's school. Return to Top Federal Stafford Loans - Subsidized and Unsubsidized Interest Rate and Fees Annually adjusted variable interest rate not to exceed 8.25 percent. Loans usually are disbursed in two or more installments.