Direct Stafford Loans are student loans that must be repaid and are available to both undergraduate and graduate students.
First-year undergraduates are eligible for loans up to $5,500. Amounts increase for subsequent years of study, with higher amounts for graduate students. The interest rates may vary based on when the loan is borrowed. There are two types of Stafford loans:
- Subsidized Stafford loan - A loan for which the government pays the interest while you are in school, during grace periods, and during any deferment periods.
- Unsubsidized Stafford loan - A loan for which you are responsible for paying all the interest that accrues from the date of the first disbursement until the loan is paid in full.