Students must be enrolled or accepted for enrollment on at least a half-time basis at a participating school. The student must not be in default on any federal education loan. There are annual and cumulative loan limits which depend on the academic year and the dependency status of the student. The interest rate on Stafford loans is currently variable and may change each July 1st. You receive the lower rate when your loan is in a school, grace, or deferment status.
Interest rates depend on the rules in effect when a loan is made.
Any older loans you have will have different interest rates. The funds go directly to the school where you are enrolled. The school may deliver the proceeds to you or credit your student account. You may make payments on your loan at any time. You must then fill out the Stafford Loan Application and take it to the lender of your choice.