The Federal Stafford Loan:

Federal Stafford Loans are affordable, low interest, government guaranteed loans designed for undergraduate and graduate students. Depending on your level of financial aid need, your financial aid award letter will clarify your eligibility. Types of Stafford Loans:

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  STAFFORD LOANS explained

STAFFORD LOAN PROGRAM benefits:

• Low, variable interest rates*  
• Deferred interest on Unsubsidized Stafford Loans during half-time enrollment
• Make no payments until six months after you graduate or drop below half-time
   
Grace Period
• Stafford loans allow you to receive a six-month grace period the date you graduate or drop below half-time. During these six months you may begin repayment but are not required to do so.
   
Repayment Plans
Standard Payment Plan
• You pay the same amount each month for up to 10 years towards the principal and interest of the loan. The minimum payment amount is at least $50 each month.
   
Graduated Payment Plan
• You begin repaying your loan with a lower payment and increase that amount after two to four years. The minimum payment amount is at least $50 each month.
   
Income-Sensitive Payment Plan
• You may repay your loan based on your gross monthly income. You must show income documentation annually and additional documentation may be required.
   
Extended Payment Plan
• You may take up to 25 years to repay your loan if you received your first loan after October 7, 1998 and your combined loans totals $30,000 or more.
   
Disbursements
• Once you have completed your application, your financial aid office will determine your scheduled payments for the academic year. Your check will go to the school who will then ask you to pick the check up from their office, endorse it to the school or they may deposit it directly to your bank account, depending on your individual circumstances.