Stafford loan - The federal government gives out the Stafford loans. These loans are given

Stafford Loans, officially known today as Direct Subsidized Loans and Direct Unsubsidized Loans, are a cornerstone of federal student aid, helping millions of students finance their higher education. While the U.S. Department of Education is now the direct lender for these federal loans, borrowers interact with a loan servicer who manages their account. Understanding the different types of Stafford Loans and how to evaluate potential servicers or private lenders offering similar products is key to responsible borrowing.

What Are Stafford Loans?

Originally, Stafford Loans were offered through two programs: the Federal Family Education Loan Program (FFELP), where private lenders issued the loans, and the William D. Ford Federal Direct Loan Program, where the U.S. Department of Education was the lender. Since 2010, all new federal student loans,