When you apply for federal student aid, the information you report is used in a formula established by the U.S. Congress. If there's anything left over, you're considered to have financial need.
Application is made through the school financial aid office.
Eligibility for this loan is based on need, not credit history. This loan is borrowed by the student, and must be paid back by the student. There are two types of Federal Stafford Loans, subsidized and unsubsidized . The student must demonstrate financial need to receive a subsidized loan and he or she is not required to pay the interest on it while in school. It provides long term, low interest to undergraduate, graduate and professional students.