How many types of Stafford Loans are available?
There are 2 types of Stafford loans and these are as follows:
The Subsidized Stafford Loan is need-based, and "the interest is paid by the Federal Government" as long as you are attending school at least half-time. The government also pays the interest on a Subsidized Stafford Loan for the six-month grace period after you graduate or cease to be enrolled at least half-time.
2. Unsubsidized Stafford Loan
The Unsubsidized loan amounts are intended to help students that do not qualify for need-based aid or for whom need-based aid is not sufficient to meet educational expenses. For this loan, the government does not pay any interest on it. "The interest starts to accrue from the date of the disbursement."
Last edited by TaxGuru : 06-11-2009 at 11:37 PM.