An origination fee and an additional small percentage for an insurance fee are deducted from the amount borrowed. There is no income cutoff as long as you demonstrate need. This loan is called subsidized because the federal government pays the interest on the loan while you are in college. Repayment begins six months after you are no longer enrolled at least half time. You are responsible, not the federal government, for paying the interest on the loan.
Interest begins to accrue immediately upon disbursement.
Payment on the principal and interest begins six months after you are no longer enrolled at least half time. After you decide which college you will attend, check with the college to finalize Stafford Loan application procedures. Programs are available for parents and for students. For additional information to determine which applications are required, check the college's catalogue or contact the financial aid office. Program Direct loans are available only at certain colleges as an alternative to Federal Stafford and Federal Parent Loans .