Check this information carefully to make sure it is accurate. Note that not all schools participate in all SFA programs. Grants do not have to be repaid. Federal Stafford Loans are student loans that must be repaid and are available to both undergraduate and graduate students. Program, a private lender provides the funds for your Stafford Loan, although the federal government guarantees the loan funds.
Amounts increase for subsequent years of study, with higher amounts for graduate students.
The interest rate is variable, but never exceeds 8.25 percent. Subsidized Stafford loan - A loan that the government pays the interest on while you are in school, during grace periods, and during any deferment periods. Unsubsidized Stafford loan - A loan that you are responsible for paying all the interest that accrues at any point in time. Federal PLUS Loans are unsubsidized loans made to parents. If you are independent or your parents cannot get a PLUS loan, you are eligible to borrow additional Unsubsidized Stafford loan funds.