This is a low-interest loan that the student must pay back. A
student may qualify for a subsidized Federal Stafford Loan on the
basis of financial need. Subsidized means that the government pays
the loan interest while you are in school or in a period of
deferment. An unsubsidized Stafford Loan is a loan for which the
student is responsible for the interest payment while in school or
in a period of deferment. The interest rate on the Stafford Loan
will be variable but not higher than 8.25%. Students will pay a fee
of up to 4% of the loan, deducted proportionately each time a loan
payment is made. A portion of this fee goes to the federal
government to help reduce the cost of the loans, and a portion is
withheld by the lender as an administrative fee. After you graduate
or leave school, you have six (6) months before you have to begin
repayment. This is called a "grace period", and if you have a
subsidized Stafford Loan you do not have to pay any principal or
interest during that time. If you have an unsubsidized Stafford Loan
you will be responsible for paying the interest during those six
months. Your lender will let you choose one of three repayment plans
and how much you must pay each month is determined by how much you
borrow. You are required to repay the loan within ten (10) years.
