Federal Stafford Loans from NextStudent

Federal Stafford Loans, available to both undergraduate and graduate students, are one of the easiest and most affordable ways to pay for school. As a Stafford loan borrower, you can take advantage of low interest rates, fixed monthly payments, and the option to postpone repayment until you’ve left school or dropped below half-time enrollment.

• Lock in at a fixed 6.8% interest rate.
• No payments due while you’re still in school at least half time.
• No collateral or credit check required.
• No co-signers required.
• Choose from flexible repayment plans.
• Stafford Loans are eligible for student loan consolidation, which could cut your monthly student loan payments nearly in half.

Subsidized vs. Unsubsidized Stafford Loans: What’s the Difference?

NextStudent features both subsidized and unsubsidized Stafford student loans.

• Subsidized: The government pays the interest on your subsidized Stafford loans while you’re in school and during your grace and deferment periods. You must demonstrate financial need in order to receive a subsidized Stafford loan.
• Unsubsidized: With an unsubsidized Stafford loan, even though you may not be making payments (while you’re in school, in deferment or forbearance, or in a grace period), interest is accruing, and you’ll be responsible for paying that interest once repayment begins. Unsubsidized Stafford loans are non–need-based, so you can qualify regardless of how much money you or your parents make.

Flexible Repayment Options

Once you’ve left school or dropped below half-time enrollment, you have a six-month grace period before repayment starts on your Stafford loans. The standard repayment period for a Stafford loan is 10 years, but you have different repayment options available to you that could lower your monthly payment or give you more time to repay.

There are no prepayment penalties on Federal Stafford Loans, so you’ll never be charged extra for paying your loan ahead.

Stafford Loan Amounts

Students qualify for different annual Stafford loan amounts, depending on whether you’re a graduate or undergraduate student. For undergraduates, the amount of money you can take out in Stafford student loans each year also depends on your year in school and on whether you’re classified as a dependent or independent undergraduate.

Applying for a Stafford Student Loan

Apply online, or call a NextStudent Education Finance Advisor at (800) 299-4639.