The Stafford Loan Program is the largest federal loan program, and it is for students borrowing on their own behalf. Stafford Loans are part of the Federal Family Education Loan Program (FFELP). The Stafford Program offers two types of loans for student borrowers, subsidized Stafford Loans and unsubsidized Stafford Loans.

For subsidized Stafford Loans, the federal government pays the interest on your loan during certain times, such as when you're in school or in deferment. Since a subsidized Stafford Loan is less expensive for you (because the government pays some of the interest), your eligibility for a subsidized Stafford Loan must be determined first based on your need.

For unsubsidized Stafford Loans, the federal government does not pay any interest for you. You are responsible for all interest payments on the loan, even when you're in school. You can choose to make interest payments during this time or postpone them until you leave school. Unlike unsubsidized Stafford Loans, unsubsidized Stafford Loans are non-need based.

In addition to the need analysis, you must also meet the following qualifications to be eligible for a Stafford Loan:

• You must be a U.S. citizen, national or eligible noncitizen.
• You cannot be in default on an education loan or owe a refund on an education grant.

Stafford Loan amounts are determined not only by your eligibility, but by federal regulations as well. View the Stafford Loan Maximums chart for more information on these limits.