Sunday, March 16, 2008

Federal Stafford Loans

A Federal Stafford loan is a type of student loan provided by the government based on financial need. There are several ways to get a Federal Stafford loan including through a bank. You may also apply for one through a credit union or directly with the government. A Federal Stafford Loan can be either subsidized or unsubsidized. The difference between the two is whether or not need exists. The subsidized version means that the government will pay the interest on the loan while the student is still in school or if he receives an extension on the time period. In an unsubsidized Federal Stafford loan, the person borrowing the money is responsible for the interest. Students can sometimes postpone the interest if need be. Most Federal Stafford loans are for the long term and usually carry low interest rates.

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