are stafford student loans federal loans
Graduate students can borrow up to $20,500 per academic year in Federal direct loans. The cumulative borrowing limit for all Federal Direct Student loans (both undergraduate and graduate) is $138,500. (Beginning in 2012, Subsidized loans are no longer available for graduate students). The Federal Direct Subsidized and Unsubsidized Loans are low-interest loans designed to provide students with funds for their college education. These loans must be repaid. Federal Direct Subsidized Loans are based on financial need. The federal government pays the interest during in-school, grace and deferment periods. Types of Stafford Loans: 1  The Subsidized Stafford Loan is a need based low interest student loan that is guaranteed by the US Federal government. 2  The Unsubsidized Stafford Loan is not awarded on the basis of financial need and is available to many more students than the subsidized loan. Borrowing Process for Direct Loans. In order to apply for a Direct Student Loan, you must first complete the Free Application for Federal Student Aid (FAFSA). The FAFSA is used to apply for all types of federal student aid and serves as your application for Direct Student Loans as well. Federal Direct Unsubsidized Loans are not based on financial need. The federal government does not pay the interest for Federal Direct Unsubsidized Loans. The accrued interest is automatically capitalized into the loan principal. Students who have not previously received a subsidized/unsubsidized loan or PLUS loan (graduate/professional students only) under the Direct Loan Program or Federal Family Education Loan (FFEL) Program. The entire counseling process must be completed in a single session. Most people complete counseling in 20-30 minutes. Interest Rates and Fees on Federal Student Loans. Summary: Interest rates on new federal student loans are fixed for the life of the loan. For loans taken out for the 2016-2017 school year, undergraduate students receive a 3.76% interest rate and graduate students receive a 5.31% interest rate. Types of Stafford Loans: 1  The Subsidized Stafford Loan is a need based low interest student loan that is guaranteed by the US Federal government. Interest on this student loan is paid by the government for as long as the student remains enrolled in an accredited university or college. Interest rate cap: 9.5%. Summary: Interest rates on new federal student loans are fixed for the life of the loan. For loans taken out for the 2016-2017 school year, undergraduate students receive a 3.76% interest rate and graduate students receive a 5.31% interest rate. All participating schools offer federal loans through the Direct Loan program. The funds for these loans, as you might guess, come directly from the federal government. The interest rate and repayment terms offered under this program are generally better than those offered by private student loans.
Yes, the Stafford student loan is a Federal loan.