Repayment is made to the institution which lends the funds to the student.
Interest is paid by the federal government while the student is enrolled in school.
Payment on the loan begins six months after the student graduates, leaves school, or drops below half-time status. The interest rate is variable and is reset annually by the federal government. The Non-Subsidized Stafford Loan is for students who do not qualify for the Subsidized Stafford Loan Program. The interest rate, terms and conditions are the same as the Subsidized Stafford except the borrower is responsible for the interest that accrues while the student is enrolled in school. Annual and total loan limits are the same as the Stafford less any amount the borrower receives under the Subsidized Stafford Loan Program.