STAFFORD LOAN PROGRAM

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  STAFFORD LOAN PROGRAM
  

The Federal Stafford Loan Program includes both subsidized and unsubsidized loans. Subsidized loans are made to students who demonstrate financial need (as determined by a federal needs test); in contrast, eligibility for unsubsidized loans is not based on financial need. Students who are ineligible for (or ineligible for the full amount of) subsidized loans may borrow un-subsidized loans. The primary difference between the two Federal Stafford Loan types is that the borrower is responsible for paying the interest on the unsubsidized loan from the date the funds are disbursed. The federal government pays the interest on subsidized loans while the borrower is in school (on at least half-time basis), during the student’s grace period, and during authorized deferment periods. Eligibility for Federal SLS loans is not based on financial need (like the unsubsidized Federal Stafford Loan), and the borrower is responsible for paying both loan principal and interest from the date the funds are disbursed. Eligibility: To qualify for either a subsidized or unsubsidized Federal Stafford loan, an individual must:

▪ be a U.S. citizen, or an eligible non-citizen;

▪ have a high school diploma or GED certificate;

▪ attend an approved college or postsecondary school on at least a half-time basis, working toward a degree or certificate;

▪ comply with federal Selective Service registration requirements;

▪ not be in default on any student loan nor owe a refund on any state or federal grant;

▪ maintain satisfactory academic progress as determined by the college or university.

Please see your guidance counselor or financial aid office for more details or the Federal Student Aid Hotline at 1-800-4FED-AID.