Federal Stafford Loan A loan available to undergraduates or graduates who demonstrate financial need. The federal government pays interest on the loan until you begin repayment and during authorized periods of deferment. This loan is not based on financial need. Interest is charged from the time the loan is disbursed until it is paid in full. If the college participates in the Direct Loan Program, the United States Department of Education is the lender.
College administrators handle the entire loan transaction.
The borrowing maximums are the same as in the Federal Stafford Loan program. The interest rate and most of the other provisions are the same in the two programs as well. A loan that enables parents with good credit to borrow money to pay the education expenses of dependent undergraduate students. Parents may borrow amounts not to exceed the difference between the cost of attendance minus any other financial aid the student receives. The U.S. Department of Interior, Bureau of Indian Affairs provides assistance to students who are enrolled tribal members regardless of their degree of Indian blood, based on financial need.