Students applying for a Stafford Loan or other federal financial aid must first complete a FAFSA.
Stafford Loans are available to students directly from the United States Department of Education through the Federal Direct Student Loan Program (FDSLP, also known as Direct).
Unsubsidized Stafford Loans An unsubsidized Stafford Loan, which you do not receive based upon your own specific financial aid.
Rather, you can receive this type of loan but must pay interest on the loan even as you are still taking classes and enrolled in school. Often times, college and university students find that Stafford loans will be dispensed to them both as subsidized and unsubsidized loans, meaning that part of the loan will be subsidized and part of it will not.
Subsidized loans are offered to students based on demonstrated financial need.They are awarded to both undergraduate and graduate students through the Direct Loan Program or the Federal Family Education Loan Program (FFELP).If you are one of millions of low-income student borrowers, the government has a deal for you: subsidized Stafford Loans.When a Stafford loan is subsidized, you are not required to pay any interest on the loan while you attend school.The federal government subsidizes the interest accrued on your account while you attend school and does not charge you interest until you finish school.Even though they’re still offered by the federal government, Uncle Sam won’t pay the interest on unsubsidized student loans.