FAQs

Federal Stafford Loans are made by private lending institutions such as banks or credit unions to undergraduate and graduate students to help them cover the costs of higher education. These loans are typically the least expensive loan option with interest rates lower than private credit loans, no payments while the student is in school at least half time, up to a 6 month period preceding repayment when no payments are required and up to 10 years to repay. Students are encouraged to exhaust their federal loan eligibility before looking in to Private Loans. There are two types of Stafford Loans, "subsidized" and "unsubsidized". Apply for a Federal Stafford Loan.

Subsidized Federal Stafford loans are awarded on the basis of financial need. The federal government pays the interest on these loans during in school, grace and deferment periods. Unsubsidized Federal Stafford loans are available to students regardless of financial need. Students are responsible for paying the interest that accrues on the loan from the time the loan is disbursed until it is paid in full.

Federal PLUS loans are available to graduate and professional students to borrow on their own behalf. Federal PLUS loans are also available to the parents of dependent, undergraduate students. All PLUS borrowers may borrow up to the full cost of attendance minus other aid received. However, before pursuing a Graduate PLUS loan, graduate and professional students should exhaust their federal Stafford loan eligibility (subsidized and unsubsidized).
Apply for a Federal Parent PLUS Loan
Apply for a Federal Graduate PLUS Loan

Money borrowed through Federal Stafford and Federal PLUS Loans can be used to cover tuition, room and board, books, and other education-related expenses.

Undergraduate and graduate students who are pursuing post-secondary education are eligible to apply for Stafford loans. Parents of undergraduate, dependent students may apply for a PLUS loan. In addition, graduate and professional students may apply for a Federal PLUS Loan on their own behalf.

The Free Application for Federal Student Aid (FAFSA) is a form to be completed by students who are interested in applying for federal and state student grants, work-study and loans. The FAFSA form can be completed online at www.fafsa.ed.gov or paper copies may be obtained from the Financial Aid office at many high schools and colleges.

The undergraduate or graduate student is the borrower on a Federal Stafford Loan. The parent of a dependent, undergraduate student of the graduate student themselves is the borrower on a Federal PLUS Loan.

If you have questions, please call 1-800-UPROMISE (1-800-877-6647).