two types
There are two types of Stafford student loans: Subsidized Stafford loans, also called Direct subsidized loans. Unsubsidized Stafford loans, also called Direct unsubsidized loans.

What is difference between subsidized and unsubsidized Stafford loans?

The U.S. Department of Education is the lender. The main difference between subsidized and unsubsidized Stafford Loans is that the subsidized Stafford is available only to those who can demonstrate financial need, and the interest is paid by the government while the student attends school at least half time.

Who qualifies for unsubsidized Stafford loans?

Direct Unsubsidized Loans are available to undergraduate, graduate, or professional degree students enrolled at least half-time at a school that participates in the Direct Loan Program. Financial need is not required to qualify.

Are Stafford Loans included in the cares act?

Federal student loans that are owned by the U.S. Department of Education are covered under the CARES Act. This includes Direct Stafford Loans, Direct PLUS Loans for parents and graduate students, and Direct Consolidation Loans. If you’re not sure who owns your student loans, you can check here.

What are the different types of Stafford Loans?

There are two types of Stafford loans — subsidized and unsubsidized — and each type has different financial-need requirements and benefits.

How does an unsubsidized Stafford Loan work?

Unsubsidized Stafford loans add the accrued interest to the loan balance, increasing the size and ultimate cost of the loan. Both subsidized and unsubsidized Stafford loans require the completion of the Free Application for Federal Student Aid (FAFSA) . To receive a subsidized Stafford loan, you must be able to demonstrate financial need.

Why are Stafford Loans cheaper than private loans?

These loans are backed by the U.S. government, so if a student defaults, the government guarantees repayment to the lender. That is the reason Stafford loans offer lower rates than private loans. There are two types of Stafford loans — subsidized and unsubsidized — and each type has different financial-need requirements and benefits.

What’s the maximum amount you can get a Stafford Loan for?

The federal student loan limits are lower for subsidized Stafford student loans. Therefore, students can borrow only as much as $5,500 a year — and up to $23,500 total — through this type of loan. You also will be eligible to borrow through subsidized loans for only 150% of the length of your degree program.