What is a Stafford Loan?

A Stafford loan is a higher-education loan that the federal government funds through the Department of Education. The loan amount depends on the student's dependency status and grade level and whether or not the loan is subsidized. These loans can be used for tuition, books, meals and housing.

The process to get a Stafford loan entails filling out the Free Application for Federal Student Aid, showing financial need (not necessary for unsubsidized loans), meeting citizenship or residency requirements and school enrollment. Applicants must also be in the clear on previous education loans. A credit report is not a factor for loan eligibility.