Note that not all schools participate in all SFA programs. Grants do not have to be repaid. Program, a private lender provides the funds for your Stafford Loan.
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 and Federal Direct PLUS Loans are unsubsidized loans made to parents. If you are an independent student or a dependent student whose 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.