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What is a Stafford Loan?
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Hi, I'm Michelle Wilson for About.com. Today I'm going to discuss what a Stafford loan is.A Stafford loan is a federal loan that is one of the best options for students borrowing for college. These loans typically have a lower interest rate than is offered by many private lenders, but there's a limit to how much you can borrow.Stafford loans come in two flavors: subsidized and unsubsidized. With subsidized loans, the federal government pays all interest that is accrued while the student is still enrolled in college. Subsidized loans are awarded based on financial need.Unsubsidized loans are different in that the federal government does not pay any accrued interest, regardless of enrollment. Students begin repayment of Stafford loans following a six month grace period after he or she graduates, drops out, or is no longer at least a part time student.I hope you enjoyed this video about Stafford loans. Thanks for watching. For more information, please visit About.com.
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