Amount of award is calculated by the government based on the student's financial need. Federal Stafford Loans Stafford Loans are loans made available to students by the Federal Government to pay for their education. These loans, unlike PELL grants, do accrue interest and must be paid back in full. Federal Government pays the interest on loan until six months after the student graduates, withdraws, drops below half time, or in times of approved deferment. Begins six months after the student graduates, withdraws, or drops below half time.
Capitalization occurs at different intervals depending on the lender's policy.
Begins six months after student graduates, withdraws, or drops below half time. This is a loan taken out by the parent to pay for the a student's education, and the parent, not the student, is responsible for repaying it. Interest begins accruing immediately upon disbursement of funds. Repayment begins on the ate the last disbursement is made. The first payment is due within 60 days after the loan is fully disbursed.