Stafford Loans
A Stafford Loan is a loan given to U.S. College students through the United States Government. Because these loans are backed by the U.S. government, students who get these loans will pay less in interest than a loan from a private lender (who would charge a higher percentage).
In order to be eligible for a Stafford loan, there are a number of eligibility requirements, including filling out a FAFSA (Free Application for Federal Student Aid). After approval, you can get a Stafford from either the Department of Education or through a private lender (more on this in upcoming articles). While a student is attending school either full or part time, no payments are due, but interest does accrue depending on the current rate for most students (students with subsidized loans have their interest paid by the government).
After leaving school, a student must start paying back the loans within six months, and at this time the loan can become "fixed" at an interest rate, often through consolidation.
UPDATE: Stafford loans are now issued only with a fixed interest rate, and no longer adjustable as of July 1, 2006. The current rate is set at 6.80%.