Stafford loan for your college funding

The most widely used student loan.

Stafford loans are low-interest, state-guaranteed student loans that are available to both eligible students and students for tuition and other school-related expenses. Stafford loans are an affordable loan option that most students can pay for college. Stafford loans are the most widely used and cheapest education loan from the federal government.

Stafford loans are widely available and inexpensive!

Stafford loans are available to students either directly from the US Department of Education through the Federal Direct Student Loan Program (FDSLP, also known as Direct) or from a financial intermediary (such as Chase, Sallie Mae or Student Loan Corp). Stafford loans are granted in the student’s own name. There is no credit check so students do not have to worry about finding a co-signer to earn money for a college or graduate school. Stafford lending rates are lower than other forms of consumer finance, and repayment will be postponed for six months until you leave school or go below enrollment. Stafford loans are supported by the federal government (guaranteed) and have fixed interest rates.

There are two types of Stafford loans: Direct and FFEL.

Direct loans

The US government grants Federal Direct Student Loan Program (FDSLP) loans managed by Direct Lending Schools directly to students and their parents. Many students who apply for Stafford Loans in one of the categories choose direct credit, where the money comes directly from the government and goes directly to the school.

FFELP (Federal Family Education Loan Program)

Private lenders such as banks, credit unions and savings banks associations provide loans from the Federal Family Education Loan Program (FFELP). FFEL loans, which are financed by private lenders, are still covered by Bunds and lenders must adhere to strict federal credit guidelines. The Stafford Loan Funds FFEL program can be used for educational expenses such as tuition, fees, books, living expenses, transportation, child care, and more. Both the FFEL and the Direct Loan programs consist of so-called Stafford Loans (for students). and PLUS loans (for parents). In a FFEL Stafford loan, the lender sends the loan funds to your school.

Stafford loan eligibility

To receive a Stafford loan, you must apply for a free application to Federal Student Aid (FAFSA). Simply complete the FAFSA form through your educational institution or online at

A student is considered …

In order to qualify for a federal grant, a student must be a permanent resident or a legitimate non-citizen. They must have a valid social security number, attend a qualifying school or be enrolled as at least a half-time student. If you are already enrolled, you must achieve satisfactory academic progress in your degree program according to the school’s standards. You must have at least a university degree or the recognized equivalent of a university degree.

A borrower may not be eligible if he or she has not paid a federal education loan, owes an overpayment for other federal education grants, has been convicted of drug abuse during state student assistance, or is detained.

Subsidized loans (as needed)

A Federal Stafford subsidized loan is provided for financial needs and is available through the Federal Family Education Loan Program (FFELP). About 2/3 of the subsidized Stafford loans are to students with an AGI (Adjusted Gross Income) of less than $ 50,000, a quarter to students with a Family AGI of $ 50,000 to $ 100,000 and just under 10% to students with an AGI family bond awarded $ 100,000. The interest rate on subsidized Stafford loans, which were first paid on or after 1 July 2008, is set at 6.0%.

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