Note that not all schools participate in all federal SFA programs. The U.S. Department of Education's SFA programs and eligibility criteria for these programs are described below. 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. You are responsible for paying all of the interest that accrues on an unsubsidized Stafford Loan. 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 Stafford Loan funds. The PLUS Loan interest rate is variable, but never exceeds 9 percent.