Stafford Direct Loans

A Stafford Direct Loan is a lending instrument backed by the federal government that is designed to make paying tuition more feasible for individuals. There are two main types of Stafford Direct loan options available to students who qualify - subsidized and unsubsidized loans. There are many benefits of obtaining a Stafford Direct Loan for funding educational pursuits.

Subsidized Stafford Direct Loan Instruments

A subsidized Stafford Direct Loan is a special lending instrument that is offered interest free for a period of time to qualifying students. This type of loan can keep college costs particularly low because interest does not begin to accrue until after a six-month grace period. It is also held off during periods of qualified deferment.

Unsubsidized Stafford Direct Loan Options

When an unsubsidized Stafford Direct Loan is obtained, students will begin accumulating interest charges immediately. Although this type of loan can be more costly than a subsidized loan, it does still have advantages over other lending options.

Benefits of Stafford Direct Loans

Both subsidized and unsubsidized Stafford Direct Loans are sought after by students because they tend to offer:

  • Low interest rates;
  • Lengthy repayment terms;
  • Options for deferment and forbearance.

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