Stafford Loan


DEFINITION of 'Stafford Loan'

Federal, fixed-rate student loans available to college and university undergraduate and graduate students who are attending college at least half-time. Stafford loans are intended to supplement existing personal and family resources available for higher education costs, including scholarships, grants and work-study. Stafford loans can be used to pay for the costs of education, including tuition, room and board, books, and other education-related expenses.

BREAKING DOWN 'Stafford Loan'

A Stafford subsidized loan is a federally-guaranteed loan that is based on financial need. The maximum amounts that may be subsidized are $3,500 per year for freshmen, $4,500 per year for sophomores, $5,500 per year for juniors, and $5,500 per year for senior or fifth-year students. Students must first be accepted to a college or university and complete the Free Application for Federal Student Aid (FAFSA) prior to applying for the Stafford student loan.

  1. Free Application For Federal Student ...

    The form that must be completed in order to qualify for any type ...
  2. Education Loan

    Money borrowed to finance education or school related expenses. ...
  3. PLUS Loan

    A low-cost student loan offered to parents of students currently ...
  4. 529 Plan

    A plan that allows for the prepayment of qualified higher education ...
  5. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  6. Qualified Higher Education Expense

    Expenses such as tuition and tuition related expenses that an ...
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  3. What are the long-term effects of delinquent accounts?

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  4. What are the differences between delinquency and default?

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