Federal Stafford Loans are available to both undergraduate and graduate students. To apply, you must file a Free Application for Federal Student Aid (FAFSA) each year you are enrolled. Through the FAFSA results, the financial aid office at your school will determine whether you are eligible for either a Subsidized or an Unsubsidized Stafford Loan.

Subsidized Stafford Loans:		These are awarded to students who demonstrate financial need. Interest is not charged until the student enters repayment.
Unsubsidized Stafford Loans:		Students are not required to demonstrate financial need. The borrower is responsible for paying all interest charges on the loan.

See a full comparison of Subsidized and Unsubsidized Federal Stafford Loans.

Stafford Loan general information:

• For loans disbursed 7/1/08–6/30/09, the interest rate on any Stafford loan for graduate students and on unsubsidized Stafford loans for undergraduates is fixed at 6.8% and on subsidized Stafford loans for undergraduates at 6.0%.
• The federal government charges a 1% loan origination fee and a 1% loan default fee on Stafford loans, which is deducted from the original amount you borrow each year.
• When you graduate or leave school, you'll have a six-month grace period before you begin repayment on your loans.
• You can take up to 10 years to repay your loan(s); you can also choose from a variety of repayment plans. You can request to change your repayment plan once every 12 months as long as you continue in loan repayment!
• You may apply for deferment if you experience economic hardship or re-enroll in school. You may also request deferment from your lender if you need to postpone payments in some situations. Contact your lender for assistance with this option.

Learn more about money-saving borrower benefits available to Southwest federal Stafford loan borrowers.

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