The Federal Stafford Loan is a low interest loan made by a lender. The financial aid office will counsel you as to the type of loan for which you are eligible and as to the amount you may borrow.
Must complete a FAFSA, a Stafford Loan Request and a Master Promissory Note (MPN) for a Federal Stafford Loans.
All students borrowing a Stafford Loan for the first time at SCC are required to complete entrance loan counseling. Upon graduation or ceasing to be enrolled at least half-time, you must complete an exit loan counseling session.
A Subsidized Stafford Loan is awarded on the basis of financial need. No interest payments are required before repayment begins or during an authorized period of deferment. The federal government “subsidizes” the loan during these periods by paying the interest for the student.
An Unsubsidized Stafford Loan is not awarded on the
basis of financial need. The student will be charged
interest from the time the loan is disbursed until it is
paid in full. If interest is allowed to accumulate, it will
be capitalized which means the interest will be added to the
principal amount. Then interest will be charged based on
this higher amount. Capitalization will increase the amount
that must be repaid. If the student chooses to pay the
interest as it accumulates, loan payments will
cost less.