A Direct Stafford Student Loan is a Student
loan without the need for a Co-signer
The direct Stafford student loan is like the Federal Perkins loan in that it also is a
loan that must be paid back and it also is a federally subsidized loan. It also has a low current student loan interest rate but not as low as the Perkins
loan. The Stafford loan rate is variable and adjusts every twelve months every July 1st but are capped at
a low level...currently 6.8%. There are two kinds of Stafford loans...Direct which is transacted through the
William d Ford student
loan program and the FFEL which is the Federal Family Education Loan program. These two programs are
essentially the same except the Direct is provided directly from the federal government and the FFEL comes from
private lenders who participate in the FFEL loan program such as banks, local credit unions or other lenders
who choose to have an interest in providing educational student loan programs. Stafford student loans also can be subsidized or
unsubsidized. This means that if the loan is a subsidized college loan it was qualified based on
financial need with the federal government paying the interest on the loan while the student is still in school.
Six months after graduation students must pay the full payment themselves. If unsubsidized, need does not
have to be demonstrated but students may need additional monies for school such as to pay for books, room and board
etc. They can still have access to this very good college loan program. Payments on the unsubsidized
Stafford loan program begins the day the loan is disbursed. Students can take 10 to 25 years to pay back
both of the above student loans. There is student loan forgiveness in certain unusual circumstances and
students may be eligible for a student loan
deferment or discharging the loan entirely.
Current Maximum Stafford Loan Amounts
A student who obtains student loans through the with Stafford loan program and based on the current loan amounts
could borrow no more than $27,000.
More Helpful Reading
loans from many sources.
Want to know the difference between college
scholarships and grants?
Read more on Direct Stafford
Student Loans without Cosigner.