Interest is not charged on a Subsidized Stafford Loan while you're enrolled at least half-time at Lawrence (9 or more units), during grace periods, and during deferment periods. Subsidized Stafford Loans are for students with "financial need" as determined by their Expected Family Contribution (EFC).
You are not required to demonstrate "financial need" to receive a Unsubsidized Stafford Loan. Interest is charged and accumulates on an Unsubsidized Stafford Loan from the time it’s first disbursed (credited to your student account). You can elect to pay the interest (although you're not required to) while you're in school, during grace periods, deferment or forbearance periods, or you can allow it to accrue and be capitalized (that is, added to the principal amount of your loan). If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay because you will be charged interest on a higher principal amount.
Direct Subsidized Stafford Loan
The Federal Direct Subsidized Stafford Loan is awarded to students who demonstrate financial need as determined by the FAFSA. Interest on a Federal Direct Subsidized Loan is paid by the federal government while the student is enrolled at least half-time, during deferment periods and, for loans disbursed before July 1, 2012, during the 6-month grace period. Repayment begins 6 months after a student graduates or is no longer enrolled at least half-time (9 units).
Direct Unsubsidized Stafford Loan
Federal Direct Unsubsidized Stafford Loans are non-need-based loans. Interest begins accruing on the loan at the time of disbursement. The student has the option to make interest payments during the in-school period, or to allow the accrued interest to be capitalized (added on) to the principal balance. Repayment begins 6 months after a student graduates or is no longer enrolled at least half-time.
