No additional application is required. These are obtained directly from many banks, credit unions, and fraternal loan agencies. Previous loan borrowers must be aware that they may be paying different interest rates on loans when they go into repayment. The interest rate is stated on the promissory note. Federal Stafford Student Loans may be awarded as subsidized or unsubsidized.
Interest starts accruing from the first disbursement of the loan proceeds.
The student borrower is responsible for the interest payment by either paying the interest or asking the lender to capitalize the interest. Independent students and those dependent students whose parents have been denied a parent loan may be eligible to borrow additional unsubsidized Stafford Student Loan amounts. Students may borrow two times at the same grade level. A separate loan application is required for students borrowing under this program. Many larger banks participate in this program.