No interest is charged, nor is repayment necessary as long as the student is enrolled at least half-time at an approved institution. Interest is charged and repayment begins nine months after the student withdraws, graduates, or drops below half-time status. The Federal Direct Subsidized Stafford Loan Program is a federally subsidized student loan program in which the U.S. Government is the lender. Repayment of the principal and the interest is deferred as long as the student is enrolled at least half-time at an approved institution. Interest is charged and repayment begins six months after the student withdraws, graduates, or drops below half-time status.
Interest rates are variable.
The Federal Direct Unsubsidized Stafford Loan Program has the same loan terms, conditions, and interest rates as the Federal Direct Subsidized Stafford Loan except that the student borrower pays the interest during in-school and deferment periods. For dependent students supported by their parents, the combined total of subsidized and unsubsidized Stafford loans may not exceed the Stafford loan limits as stated above. The U.S. Government is the lender, and the interest rate is variable. Payment is due generally 60 days after disbursement of the funds. Since financial aid is awarded on a funds-available basis, it is important to apply early.