What is a direct Stafford loan?

Direct Stafford Loans are education loans issued by the federal government that offer flexible repayment options and competitive interest rates. These types of loans are available to students who are enrolled in school half-time and are used to pay education expenses.

To receive a loan, students must apply for financial aid and meet specific eligibility requirements. Direct Stafford Loans allow students to borrow only what is needed to meet cost-of-attendance needs such as tuition, room and board, fees, and books. Most students maximize Stafford Loan options prior to taking out other types of loans with strict terms and higher interest rates.