Stafford Loans are low interest loans and the most common source of education loan funds. In general, there are two types of Stafford Loans: subsidized and unsubsidized. For graduate study, only unsubsidized loans are available.
- Students may borrow up to $20,500 in a given academic year.
- The Borrower is responsible for paying all interest.
- Interest begins to accrue at the time of disbursement and continues even while the student is enrolled.
- Borrowers can pay the accumulating interest while in school or allow the interest to capitalize and pay the larger sum later.
- Unsubsidized Stafford loans are not based on financial need.