| Stafford loans are the most common types of loan | | | | program. The procedure of applying for the loan is |
| available for students perusing a higher education. | | | | same in both the cases but the repayment period |
| Stafford Loans have been providing loans for | | | | and nature can be highly varied in both the options. |
| students tuition and other college and school related | | | | Also there are now two types of Stafford Loan, the |
| financial requirements for many decades. There are | | | | first one being a subsidized Stafford Loan. In this |
| many ways to receive a Stafford loan as many | | | | type of loan the student actively pursues the college |
| variants of the loans are available which can be | | | | or university and it is the Government which pays for |
| processed depending on the cost and situation of the | | | | the interest on behalf of the student. The |
| student. | | | | government pays for the interest during the |
| Stafford loans are offered through the United States | | | | student's college period and for an estimated grace |
| Department of Education either form the Federal | | | | period after the completion of the course or till the |
| Family Education Loan or in the form of William D | | | | time when the student is unemployed or has no |
| Ford Federal Direct Loan. In both the circumstances, | | | | other method of repayment. These types of loan |
| Stafford Loans are provided either to the student or | | | | are need-based loans and students who don't qualify |
| parents who have requirements to pay for their | | | | for the need based financial aid do not receive these |
| children schooling fees. | | | | types of loans. |
| Normally, most colleges and universities through out | | | | An unsubsidized Loan is the second type of Stafford |
| the United States do not participate in any one | | | | Loan which is not a need based loan. In this type of |
| program for student loans. Some of them utilize the | | | | loan the government does not pays any interest at |
| FFEL program whereas many go through the Direct | | | | any time and it is the sole responsibility of the |
| Loan program. In the case of the Direct Loan | | | | student to pay the interest and the principal amount, |
| program, it is the Federal Government that provides | | | | though the student can defer the interest rate for a |
| the loan amount but in the case of FFEL the amount | | | | further agreed time period. However students need |
| of money for the loans come from credit institutions, | | | | to understand how interest will be added and applied |
| banks or any other third party that participates in the | | | | to the principal of the loan. |