Definitions for "Stafford Loans"
Low-interest subsidized and unsubsidized loans guaranteed by the federal government and available to students to fund education.
These are federal loans available to you through local lenders. There are two types of Stafford Loans: Subsidized and Unsubsidized. For the Subsidized Stafford Loan, you must demonstrate need, and you pay nothing on the loan while in school. Repayment begins 6 months after leaving school. Unsubsidized Stafford Loans are available to non-need students, but require interest payments while in school.
loans made to undergraduate and graduate students under the FFELP and Direct Loan program. Borrowers can receive FFEL or Direct Stafford Loans regardless of financial need. Interest rates vary but cannot exceed 8.25 percent.