Definitions for "Federal Stafford Loan"
Federal loans for students, both undergraduate and graduate, available from lenders who participate in FFELP or the Direct Program. Subsidized Federal Stafford Loans are made on the basis of financial need, and the government pays the interest while the student is enrolled. Interest is variable based on the 91-day Treasury bill rate as of July 1 prior to the academic year plus 1.74%, capped at 8.25%. Repayment may take up to 10 years, but is deferred until 6 months after a student graduates, leaves school, or drops below half time status. Borrowers are charged a 3% origination fee and a guaranty fee of up to 1%, both deducted from the face value of the loan before disbursement. Students who do not qualify for a Subsidized Federal Stafford Loan, or who need additional funds, may borrow an Unsubsidized Federal Stafford Loan. Interest rates and repayment terms are similar to those of the Subsidized Federal Stafford Loan, with the exception that the government does not pay the interest while the student is enrolled or deferred.
a loan, not a grant
a long-term, low interest loan available to students to help pay expenses related to attending a college or university