The loan is guaranteed by a state or private non-profit agency, or is insured by the federal government. Repayment begins six months after the student ceases to be enrolled at least half time. The Stafford Loan Program now requires the payment of an origination fee equal to 4 percent of the face value of the loan, which will be deducted from the proceeds of the Stafford Loan. Application procedures and interest rates are the same for both loans. Interest can be deferred on the Unsubsidized Stafford Loan or the student may choose to be responsible for payment of interest while in school.
Interest begins to accrue approximately six weeks after the first disbursement.
If a veteran is entitled to benefits according to the Department of Veterans Affairs, he or she will be entitled to those benefits at a full-time student status limit. These benefits include all Veteran Educational Assistance Programs.