Federal Subsidized Stafford Student Loans

Interest is fixed. The current interest rate for 2007-08 is 6.8% (in-school & grace), 7.2% (repayment)
Interest is subsidized (paid) by the federal government during in-school, grace, and approved deferment periods
Maximum $8,500/year; aggregate total of $65,500
Need-Based eligibility determined by the results of the Free Application for Federal Student Aid (FAFSA)
Student borrows from private lenders and guarantee agencies that participate in the Federal Family Education Loan Program (FFELP)
A 0%-3% origination fee may be deducted from the loan proceeds before disbursement
Grace period of 6 months after enrollment ceases
Deferment and Forbearance options available
Standard 10-year repayment schedule; extended repayment schedule available to some borrowers with large debts; minimum $50/month payment