Eligible students enrolled at least half-time and making satisfactory academic progress towards a recognized degree may apply for low-interest loans from private, commercial, or state lending institutions.These are guaranteed loans in which there is not a credit check or co-signer involved. The money comes electronically and goes directly onto the student's account.
Subsidized vs Unsubsidized Stafford Loan
There are two types of Stafford Loans: Subsidized and Unsubsidized. The Subsidized Federal Stafford Loan is need-based and interest free because the interest is paid by the Department of Education for student borrowers while they attend college on at least a half-time basis. The Unsubsidized Federal Stafford loan has the same terms and conditions as the Subsidized Stafford but does not carry the in-school interest subsidy. Students pay the interest while in school or have the option to let the interest accrue and have it capitalized.
