The Stafford Loan program provides educational loan(s) that must be repaid, with interest, even if you do not complete your academic program. Loans may be obtained from the William D. Ford Federal Direct Loan Program. Generally, all students who complete a FAFSA and have not defaulted on any previous federal student loan(s) are eligible for the program. Loans obtained through this program are lower fixed interest rate loans that are insured by the U.S. Department of Education. A student can apply for Stafford Loans through the school’s financial aid department.

The Federal Unsubsidized Stafford Loan allows students to borrow a Federal Stafford Loan who did not demonstrate sufficient financial need for the subsidized version. The same terms and conditions as the Subsidized Stafford Loan apply, except that the borrower is responsible for interest that accrues while she/he is in school and after leaving school. Generally, you may choose to make interest payments on the loan while you are in school or have the interest added to your principal balance (capitalized) when your repayment schedule begins (six months after leaving school).

The Federal Parent PLUS loan is available to parents of dependent students with good credit to help pay their child’s educational expenses. PLUS loans are not based on need. They can be combined with other financial aid resources and cannot exceed the student’s cost of education. Because PLUS loans are unsubsidized, the borrower will be charged interest during periods of deferment (while the student is in school and through the six-month grace period after leaving school) and if you choose not to pay interest as it accrues, it will be capitalized (added to your outstanding principal balance).