Stafford loans are perhaps the most popular type of loan with the student community; they are an integral part of a student’s financial planning to go through college. There are basically two types of Stafford loans – subsidized and unsubsidized. Both loans offer fixed interest rates, the main difference in repayment of each loan type is that with subsidized loans you are not responsible for paying the interest accrued while with the unsubsidized loans you have to bear the cost of the interest from the time you receive the full loan amount.

Here is a lowdown on what you can expect from the two loan types:
The eligibility requirements for both loan types are the same; basically you should be a U.S citizen or an eligible non-U.S citizen with a valid social security number. You should maintain good grades and not have any repayment on a federal grant.
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A Federal Stafford Subsidized Loan is a great option for you if you are a financially under-privileged student. The interest accrued on these loans is paid by the federal government while you are in school. Subsidized loans are available on the basis of financial eligibility. This is determined by your school.

Eligibility for Federal Subsidized Stafford Loans:
• You need to fill the Free Application for Federal Student Aid. Your school decides whether you meet the application requirements.
• You should be carrying at least a half-time course load
• It helps if you have a good credit record.

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