Federal Stafford Subsidized Loan is the main loan in the Federal Direct Loans program. This is a low interest loan provided by the federal government. A Federal Stafford Subsidized Loan is a Student Loan offered to eligible students enrolled in accredited American institutions of higher education to help finance their education.

Apply For Student Loans The most important student loan is the one with lowest interest rate. In case you are not sure where to start with student loans, use our Financial Aid WIZARD Student Loans Quick Link List: --- select your Student Loan --- Federal Stafford Loans(Sub) Federal Stafford Loans(UnSub) Federal Parent PLUS Loans Federal Perkins Loans Private Student Loans Parent Loans Peer To Peer Loans Personal Loans Graduate Loans Professional Loans MBA Student Loans Business School Loans Law School Loans Medical School Loans Dental School Loans Nursing School Loans Military and Veteran Loans Global Health Loans (GHELP) Loans For Disadvantaged (LDS) Primary Care Loan (PCL)   Student Loan Sections Student Loans Parent Loans Federal Student Loans Private Student Loans Loans For Graduates Federal Graduate Loans Private Graduates Loans Loans By Profession Federal Parent Loans Private Parent Loans Other Parent Loans Federal Programs Peer to Peer Loans Personal Loans Student Loans Repayment Apply For Student Loans Student Loans In Default Interest Rates   Student Loans For Students Parents Undergraduate Students Graduate Students Professionals MBA Students Business Students Law Students Medical Students Nursing Students Dental Students Military and Veterans International Students Disadvantaged Students   Student Loan Topics Obama Student Loans Student Loan Taxes Federal vs. Private Loans Private Loan Benefits Loans Repayment Protection Interest Rates Explained How To Choose a Lender Highly Rated Student Loans International Student Loans Best Student Loan For Me How To Choose a Student Loan Student Loan Lenders Bad Credit History Loans Student Loans Eligibility Loan Process Federal Direct Loans Program Federal FFEL Loans Program Compare Loan Types Before You Get a Loan After You Get a Loan Interest Rates Compare Student Loans Build Perfect Credit History   Student Loans By Rating Federal Stafford Loan(Sub) Federal Parent PLUS Loan Federal Stafford Loan(UnSub) Federal Perkins Loan Private Student Loan   Most Popular Loan Federal Stafford Loan (Sub)   Student Loan Tools Financial Aid WIZARD Student Loan Calculator   Student Loan Resources Loans Discussion Loans Facts Loans FAQ Loans Glossary Loan News and Articles Loans Questions Loans Tips

Federal Stafford Loans Subsidized Overview These loans are for undergraduate, graduate and professional students enrolled for at least half-time. Both Federal Direct Loans Program and Federal Family Education Loans (FFEL) Program support these loans. Students required to take out Student Loans should concentrate on this low first as this loan has the most favorable features, and very low Interest Rates. This subsidized loan is made by the federal government directly. U.S. Department of Education is the lender and loan servicing agency. Students applying for this loan must show financial need. As with most Financial Aid awarded based on financial need this loan is available on first come first serve basis. How To Apply The first step when applying for Federal Stafford Loan is to submit your FAFSA Application. The easiest way is to use the Apply page under Student Loans. Student may also contact their respective colleges for Federal Stafford Loans. Eligibility Stafford Loans Subsidized are for Undergraduates, Graduates and Professional Study students. Credit history is not required for this loan. You must be enrolled as at least half-time student to be eligible for this loan. You must also have financial need in order to qualify for Subsidized Stafford Loan. Award Amounts The award amounts depend on grade level at school and dependency status. Here we present loan limits for the First Academic Year: Award Amounts   Dependent Undergraduate Student - $3500   Independent Undergraduate Student - $3500   Graduate and Professional Study Student - $8500 Interest Rates The federal government pays interest on subsidized loans during school and certain other periods. The rate for Undergraduate Students is fixed at 6.0% For Graduate Students the rate is also fixed at 6.8% percent. Repayment Options The lender in this case is U.S. Department of Education and you repay the loan to the federal government. No private institution or bank is involved here. Students have between 10 to 25 years to repay, depending on the amount owned and type of repayment plan the selected. You will receive more information about your repayment choices when you leave school, or during your grace period. Direct Stafford Loan holder make payments using their PIN at www.dl.ed.gov Stafford loans offer something called: grace period. U.S. Department of Education pays the interest for the first six months after you leave school and they also pay for you during a period of deferment.

In general your school will disburse your loan in at least two installments with certain exceptions.

No installment will be greater than half the amount of your loan. If case you are a first year Undergraduate Student and a first time borrowers, your first disbursement can not be made until 30 days after the first day of your enrollment date.

If you are a first time borrower you must complete entrance counseling before you receive your loan disbursement.

Student Loan Tips

Q:  Take Out Student Loans As The Last Resort
When you try to get all types of Financial Aid and you do not receive anything or if the amount of money is not enough try borrowing money by taking out loans.

Q:  Use Your Grandparents
Everyone talks about parents, but very rarely do we hear Grandparents. They can take out a Loans and help you store some of the assets.

Q:  Apply For Student Loans On the Same Day
We are not sure if this tip is valid, but if you have to apply for more than one student loan (different banks) do it on the same day. This will prevent the second bank to see your first loan on the credit history and it will be easier to get qualified.

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Important Questions

Q:  When do I pay back my Stafford Loans?
After you graduate, leave school, or drop below half-time enrollment, you will have a six-month "grace period" before you begin repayment. During this period, you'll receive repayment information, and you'll be notified of your first payment due date. You're responsible for beginning repayment on time, even if you don't receive this information. Payments are usually due monthly.

Q:  Will I get cash from the Federal Stafford Loan?
This is possible. The money from the loan is used to pay for tuition, fees, room, and board first. If funds remain, you will receive them by check or in cash. You may also give your school a written permission to hold the funds until later in the enrollment period.

Q:  Is credit history required for Federal Stafford Subsidized Loan?
No, credit history is not required for this loan.

Q:  Are there any other fees for Federal Stafford Loan?
There could be. There is a loan origination fee of 2.0 percent.

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When applying for Student Loans this is the best loan possible. Federal Stafford Loan Subsidized has the lowest interest rates and the best repayment options out of all loans. The loan is provided by the U.S. Department of Education. Credit History is not required for this loan.