Subsidized Stafford loan

The subsidized Stafford loan is the best, first choice for students looking to borrow money for education.

What are the benefits of a subsidized Stafford loan?

• Low fixed interest rate, as low as 5.60%
• No payments while enrolled in school or in deferment
• No interest while enrolled in school or in deferment
• Acceptance not based on credit

Who is eligible for a subsidized Stafford loan?

In order to be eligible for the subsidized Stafford loan, you must meet the following qualifications:

• US Citizen or eligible non-citizen
• Enrolled half-time or more in an accredited academic program
• Have completed the FAFSA
• Have completed high school or equivalent (e.g. GED)
• Not in default or delinquent on any existing federal loan

Once you complete the FAFSA and receive the results, the Department of Education and your school will determine your final eligibility for the subsidized Stafford loan and what amount you may borrow, if any.

The federal government uses a universal formula to calculate a family's financial ability to assist in paying for their child's education. A student wouldn't be eligible to receive subsidized student loans simply because their parents refused to pay for a specific college for one reason or another (i.e., location, size, program options, religious affiliation, etc.). This student would have to find other options to pay for college such as college scholarships and/or taking out a private student loan.