Stafford loans are loans that are guaranteed by the federal government. The interest rate for these loans is variable and set by the government depending on the market rate. The rate changes in July of every year. There are two types of Stafford loans. Now the loans are issued through the federal direct loan program, but in the past you could borrow these loans through a variety of lenders. he loans follow the same guidelines as the old stafford loans.You will know about them as Stafford student loans in case you are dealing with student loans that you got before the Direct Loan program was put into place. The subsidized Stafford loans are the best loans to take out. The government pays the interest on the balance of the loan as long as you are in school working towards your degree. This can save you a lot of money over the years. The amount that you can borrow subsidized is limited, and dependent on your income. The amount increases as you get nearer to graduation so you can take on internships or focus more on your eductions in the current Federal Direct program. Unsubsidized Stafford loans start accumulating interest the day you take out the loan. You can opt to pay the interest each month or to have it added into the balance that you owe each month. 

Stafford loans

While you are in school, it is much wiser to pay the interest on the loans. You are offered the unsubsidized loans in case you need more money to live on or you are attending a school with higher tuition. By filling out the FAFSA (Free Application for Federal Student Loan) you can apply for these loans. You can also visit your college's financial aid office to learn more about how to apply. You will be required to take a short class on repaying your loan when you take out this loan. Be sure that you work out a college budget before you apply for loans. This will help you determine how much you need to borrow for school, and to identify expenses you do not really need. The loan counseling you receive should outline how much you will have to pay each month once you graduate. It can be crippling to have too much student loan debt when you graduate, and you need to act carefully to avoid being bogged down by it in the future. Since the application is the same as the Pell Grant application, you should apply in addition to this. However, you do not need to take out all of the student loans you are qualified for. Instead you may choose to borrow only what you need. You may want to discuss the options with your parents or another trusted adult in case you are just entering college. hey may be able to help you understand how tight your budget is going to be and have suggestions on ways to save or part-time jobs you can take on while in college.