What is a Stafford Loan?

About Stafford Loans:

There are basically two types of Stafford loans: the Federal Family Educational Loan and the William D. Ford Federal Direct Loan.
Under the Direct loan program, funds come directly from the government. For the FFEL loan, funds come from either a bank, or other type of lender.
Both of the types of Stafford loans are similar in terms and conditions. The main difference is where the funds are coming from.
For a FFEL loan, the funding comes from a separate bank, credit union or other participating lender. A federal Direct loan comes directly from the federal government.
For both Stafford loans students have to fill out an application called a Federal Student Aid Application which the school will go over and if approved then you will have to sign a promissory note for the loan.
Stafford loans will begin the repayment schedule 6 months after graduation and/or withdrawing from college.
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