Stafford Loan. Direct Stafford Loans are student loans that must be repaid and are available to both undergraduate and graduate students. Stafford Loans are the most common form of Federal financial assistance to students seeking to further their secondary education.
The Stafford loan is the most popular low-cost federal student loan, with both subsidized and unsubsidized varieties.
The Federal Stafford Loan, also known as the Federal Direct Loan, is the largest and most popular student loan program.
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Federal Stafford Loans (or Stafford Loans as many people know them) fall under this category since some borrowers are unclear if and how they differ from Federal Direct Loans. Note that Stafford loans are usually only one part of a larger financial aid package. When a Stafford Loan is subsidized, the government pays your interest as long as you're enrolled as a full-time student and for a six-month grace period following graduation.