Subsidized loans come with some great benefits: Because the federal government pays the interest during the periods noted above, subsidized loans will save you money. They offer flexible repayment options you won’t find with private loans.

A subsidized loan is a type of federal student loan. Once you start repayment, the government stops paying on that interest, and your repayment amount includes the original amount of the loan, and the interest, accruing from that moment.

You will repay a Federal Direct Stafford Loan to the U.S. Department of Education. For unsubsidized loans, you will be charged interest from the time the loan is disbursed until it is paid off in full. However, you can choose to defer payment of interest while you are in school and during any grace or deferment period.

If you have Direct Loans such as Stafford Loans, for example, then these student loans are automatically eligible for public service loan forgiveness. With the new changes, any prior payments made on FFELP Loans will now be eligible and count toward student loan forgiveness.

If you have a subsidized loan, the federal government will pay the interest during the grace period. With both loan types, you can choose to add the interest to the balance of your loan and pay it as part of your monthly payment after your grace period ends.

You have six months to begin repayment on Stafford loans after graduation, or after you leave school or drop below half-time enrollment. Older Stafford Loans may have a longer grace period. Interest will not accrue while you are in school, and during the grace period for subsidized Stafford loans.

Generally, you’ll have 10 to 25 years to repay your loan, depending on the repayment plan that you choose. Learn more about your repayment options.

Stafford student loans can be a smart way to finance your college education. Since they come with relatively low, fixed interest rates, they should probably be your first pick before turning to a PLUS loan or a private student loan.

Yes, Direct Stafford Loans are loans that need to be paid back. The type of loan you have determines when you need to start paying it. Subsidized Stafford Loans: the government pays the interest while you are in school, during grace periods, and during any deferment periods. Unsubsidized Stafford Loans: you…

When a Stafford Loan is subsidized, the government pays your interest as long as you’re enrolled as a full-time student and for a six-month grace period following graduation.

There are dollar-amount limits on Stafford loans based on what year of school you’re in; whether your Stafford loans are subsidized or unsubsidized and whether you are financially dependent on your parents. Subsidized Stafford Loans have stricter limits than unsubsidized.

Applying for a Stafford Loan Apply for a Stafford loan by completing a Free Application for Federal Student Aid (FAFSA) form. This application is also used to determine if you’ll receive a Perkins loan, another type of federal student loan.