Applying for Stafford Student Loan – Here is What You Need to Know

Direct Stafford Loans are low-interest loans. It was founded by William D. Ford. The purpose of the William D. Ford Federal Direct Loan (also called FDLP) Program is to help pay qualified students after high school for higher education at a four-year college or university, community college, or trade, career, or technical school. Qualified students can borrow money from the U.S. Department of Education at schools that are taking part in this program. It is the single largest provider of federal financial assistance for post-secondary students and their parents. Direct Stafford Loans are provided to undergraduate and graduate students and they have to repay it to the U.S. Department of Education after a specific amount of time.

Stafford Loan

Types of Direct Stafford Loan

Direct Stafford Loan is of two types:

  1. A Subsidized loan is granted based on a financial need. The financial need of a person is determined by the information he provides on the Free Application for Federal Student Aid (FAFSA).
  2. An Unsubsidized loan is not given out based on financial need. However, you must also apply using the FAFSA. You will be paying interest on unsubsidized loans from the moment the loan starts to pay out until the time it is fully paid.

Direct Stafford Loan Requirements

The basic eligibility criteria for the Stafford Loan Application is to be enrolled in a postsecondary educational program leading to a postsecondary degree or certificate (includes universities and colleges).

Process of Stafford Loan Application

If you want to apply forĀ  Stafford Student Loan, follow these instructions carefully:

  1. Fill out the FAFSA (Free Application for Federal Student Aid)
  2. You can also apply online using FAFSA on the website at or you can attach the Stafford Loan Application and send it to their email address. You can also apply by calling the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243). TTY users for the hearing impaired can call 1-847-688-2567.
  3. You will be sent a Student Aid Report (SAR) by the Department of Education after you submit the FAFSA. Check the SAR for accuracy and improvements if needed when you receive it. This information will be sent to the GSAS office via email.
  4. You will be sent a loan letter by the GSAS Office detailing the disbursement schedule and the amount for your Loan once you get selected for the program.

Loan Terms for Stafford Loan Application

  • The maximum Loan Amount is up to $20,500 annually.
  • The Interest Rate is not constant. It is adjusted annually on July 1st. But it does not exceed 8.25 percent.
  • The Loan Length depends upon the amount borrowed and the plan you have selected to repay the amount. 30 years is the maximum loan length.
  • Payments are made on a monthly or quarterly basis. You have a six-month grace period after you graduate, drop out from the school, or drop below half-time enrollment until you could begin repayment.
  • A fee of up to 4% of the loan amount will be subtracted relatively from each loan disbursement.

For more information and queries about this program, please visit

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