Federal Family Education Loan Program – Stafford Loans are low-interest loans to students enrolled in college at least half-time (6 credits or more per semester) in a degree program. For eligibility to be determined, a student must complete the FAFSA or Renewal FAFSA to the Federal Processor and submit the appropriate Direct Student Loan application to the Financial Aid Office.
Types of Direct Student Loans
There are two types of Direct Student Loans: subsidized and unsubsidized. The Federal government pays the interest on subsidized Direct Student Loans while the student is in school and enrolled for at least 6 credits or in a deferment period. With unsubsidized Direct Student Loans, the student is responsible to either pay or capitalize the interest while in school or during a deferment period.
The amount of Direct Student Loan a student may borrow is determined by grade level, cost of attendance, family contribution and other aid.