The Federal Direct Stafford Loan is a federal program that enables students to borrow money from the Department of Education. It is available to graduate students who are enrolled on at least a half-time basis. Graduate students may apply for $20,500 per academic year.
Repayment of principal and interest begins six months after the student ceases to be enrolled on at least a half-time basis.
The borrower is expected to make quarterly interest payments while the student is enrolled in graduate school or have the interest capitalized. The loan carries a fixed interest rate.
Repayment of the principal begins six months after the student is no longer enrolled on at least a half-time basis.