The federal government pays the interest on the loan until repayment begins. Repayment begins six months after leaving school or dropping below half time enrollment. Subsidized Stafford Loans are awarded on the basis of financial need. The Office of Financial Aid determines your eligibility. The borrower is responsible for paying the interest on the loan from the time the loan is disbursed.
Students can choose to pay the interest while attending school or can allow the interest to accrue.
Unsubsidized Stafford Loans are not based on financial need. The Office of Financial Aid determines your eligibility. Loan eligibility for students enrolled in less than 12 credit hours will be prorated. A standard repayment may run up to 10 years. Repayment of principal begins six months after graduating, leaving school, or whenever enrollment drops below half time.