Both forms are low - interest loans that are insured by the federal government. The unsubsidized Federal Stafford loan is not based on financial need. Interest on the unsubsidized Federal Stafford Loan is NOT paid by the federal government at any time, and thus, must be paid by the student. Repayment of principal is deferred on both the subsidized and unsubsidized Federal Stafford Loans so long as the student is enrolled at least half - time. There is no penalty for prepayment.
Deferments are available under certain conditions once repayment begins.
The UPSL is a University Loan program to help students meet a portion of their educational costs less any other financial aid the are receiving. The interest rate can vary each September depending upon current market conditions. Principal payments are deferred while the student borrower is enrolled at Northwestern. Interest begins accruing, however, once loan funds have been disbursed and must be paid by the borrower when billed each month. Repayment of principal begins 3 months after separation from the University and can extend up to 15 years.