It is not uncommon for loan awards to differ from school to school because each institution develops its own eligibility criteria. There are two types of Stafford Loan - subsidized and unsubsidized. If the student is not eligible for subsidized loans, they may be considered for unsubsidized loans. A student's eligibility for either subsidized or unsubsidized loan monies is determined by the school. The cost of education, EFC and other financial aid determines what type of loan the student will receive.
Unsubsidized loans require a student to make quarterly interest payments while attending college.
Capitalizing a loan takes the interest that accrues during the year and adds it to the principal amount of the loan. The interest rate is a variable rate and is adjusted every July 1st. When a loan is processed, there are origination fees deducted from the approved amount. Contact the Student Financial Aid Office to find out more. All students who borrow for the first time from the Federal Stafford Loan Program must complete an Entrance interview before they can receive their loan funds.