What is a Federal Stafford Loan?
This federal program provides low-interest loans for undergraduate and graduate students. The maximum annual loan amount depends on the student’s grade level. Fixed interest rates will not exceed 6.8%. Repayment does not begin until 6 months after the borrower drops to less than half-time enrollment status. Several repayment options are available, and sometimes your loan can be forgiven in certain circumstances.
Still confused? Learn more about the Federal Stafford Loan:
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- Ask a question!
View the entire Glossary of College & Education Terms
Updated: January 2014