It is awarded to students with exceptional financial need. Recipients must sign a promissory note each year. Students are normally allowed up to 10 years to repay. Entrance interviews are required for first time borrowers. A Federal Stafford loan is a low interest, federally subsidized loan awarded on the basis of need.
Loan applications are available from banks, credits unions or savings and loan associations.
The interest rate ranges from 7.12 percent to 9 percent. Repayment normally begins six months after the student graduates or enrolls for less than half time. Entrance interviews are required for first-time borrowers. Following graduation, students may be eligible to consolidate their federal loans or repay them on a graduated basis tied to student income. It provides an opportunity for students to benefit from the low interest of the Federal Stafford Loan Programs, when they are not eligible for a subsidized loan or are eligible for less than the maximum annual limit due to federal financial need requirements.