The first step in the financial aid process is applying for the low-interest federal Stafford Loan.
Stafford loans are fixed-rate (6.8%) loans available to undergraduates and graduate students who are attending school at least half-time. There are two types of Stafford loans: subsidized and unsubsidized.
Subsidized Stafford Loan
This loan is available to students who can demonstrate financial need as determined by a federal formula. “Subsidized” means the government pays the interest on this loan while the student is in school and during authorized deferment and grace periods.
Unsubsidized Stafford Loan
This loan is available regardless of need. “Unsubsidized” means that the student is responsible for interest as soon as the loan is obtained. Interest may be paid as it accrues or deferred until after graduation.
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