Stafford Loan

   A Stafford Loan is different then other loans as it guarantees repayment to the lender if a student defaults. This is a Federal Guaranteed Student Loan. The full faith of the US Government is backing a Stafford Loan which makes the student loan have lower interest rates than the borrower would otherwise be able to get for a private loan. But a Stafford Loan isn't for everyone as it has strict eligibility requirements and borrowing limits. With a Stafford Loan there are no payments required while the student is enrolled full or half time. Payments will begin six months after graduation, withdrawing from school or being a less than half time student. Stafford loans come in both subsidized and unsubsidized loans. If the loan is subsidized then the interest is paid by the federal government while the student is in school and during the six month grace period. With an unsubsidized Stafford loan students are responsible for all of the interest that accrues while the student is enrolled in school.