Stafford Loan Repayment Provisions
Repayment of principal and interest on a subsidized Federal Stafford loan begins six months after graduation or after enrollment at an eligible institution drops below half-time.
With unsubsidized Federal Stafford loans, a student is always responsible for paying the interest; interest accrual begins on the date of the first disbursement. The student has the option of paying this interest while in school and during the grace period, or it may accrue and be added to the principal balance of the loan (capitalized) as more frequently as quarterly. Contact the lending institution for interest payment options on unsubsidized loans. Repayment of principal on an unsubsidized Federal Stafford loan begins six months after graduation or after enrollment at an eligible institution drops below half-time.
Deferment options are available for both types of Federal Stafford loans. Subsidized loan borrowers are able to defer both principal and interest, while unsubsidized borrowers can defer only the principal portion of payments. Payment of interest remains the responsibility of the unsubsidized borrower. Contact the lending institution for more information.
Stafford Interest Rates
For information on interest rates and repayment plans, click below: