Do federal stafford loans have to be paid back?

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Claire Roob asked a question: Do federal stafford loans have to be paid back?
Asked By: Claire Roob
Date created: Mon, Feb 8, 2021 3:22 AM
Date updated: Fri, Jul 1, 2022 6:46 PM

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Video answer: Understanding the subsidized & unsubsidized federal direct…

Understanding the subsidized & unsubsidized federal direct…

Top best answers to the question «Do federal stafford loans have to be paid back»

  • 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.

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Yes, you need to pay back federal Stafford loans.

As of 2012, subsidized Stafford Loans were no longer available for graduate or professional students. Unsubsidized Stafford Loans start to accrue interest as soon as the money is paid out to your school. These loans are available to undergraduate, graduate, and professional students, and there is no requirement to demonstrate financial need.

Both types of loans have to be paid back with interest, but the government makes some of the interest payments on subsidized loans. Who Qualifies for Federal Direct Loans? For both federal...

Once both the subsidized and unsubsidized aggregate limits have been met for both subsidized and unsubsidized loans, the student is unable to borrow additional Stafford loans until they pay back a portion of the borrowed funds. A student who has paid back some of these amounts regains eligibility up to the aggregate limits as before.

You won’t need to start repaying your loan until you’ve graduated, unless you’ve dropped out or have fallen below half-time enrollment. Before your first payment is due, you typically will be given a grace period of six to nine months, starting the day you drop below half-time enrollment status. This will give you time to find a job and get your finances together. If you have a subsidized loan, the federal government will pay the interest during the grace period. If you have an ...

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