What is the difference between a Stafford loan and a direct loan?
Understanding federal Stafford loans (a.k.a. Direct loans) Apply for a private student loan and lock in your rate before rates get any higher. Federal Stafford loans are often called Direct loans. Both terms refer to the same loans offered through the William D. Ford Federal Direct Loan (Direct Loan) Program.
Do you have to pay back the Direct Stafford Loan?
Yes, Direct Stafford Loans are loans that need to be paid back. The type of loan you have determines when you need to start paying it. Subsidized Stafford Loans: the government pays the interest while you are in school, during grace periods, and during any deferment periods.
What can I use my Direct Stafford Loan for?
Direct Stafford Loans, from the William D. Ford Federal Direct Loan (Direct Loan) Program, are low-interest loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school.
What can I use a Direct Stafford Loan for?
What do you need to know about a direct Stafford Loan?
Stafford Loans or Direct Stafford Loans can be unsubsidized loans or subsidized loans. To qualify for a Direct Stafford Loan, you first need to complete the Free Application for Federal Student Aid (FAFSA).
What’s the maximum amount you can get a Stafford Loan for?
The federal student loan limits are lower for subsidized Stafford student loans. Therefore, students can borrow only as much as $5,500 a year — and up to $23,500 total — through this type of loan. You also will be eligible to borrow through subsidized loans for only 150% of the length of your degree program.
What kind of Education do you need to get a Stafford Loan?
The applicant must have completed his or her secondary school education and has been awarded a high school diploma or a recognized educational certification equivalent to a high school diploma that is approved by the Department of Education.
Are there any subsidized Stafford loans for graduate students?
Direct Subsidized Loans. This type of Federal Stafford Loan is available to low-income undergraduate students who demonstrate financial need. Currently, there are no subsidized student loans for graduate students. With subsidized Stafford student loans, you’re responsible for paying your principal balance and interest.
