Types of Stafford Loans

There are two types of Stafford Loans:

  1. The Subsidized Stafford Loan is based upon financial need. The government subsidizes (or pays) the interest for you while you are enrolled in college at least half time (six credits) and are in an eligible, degree-seeking program. Interest begins accruing at a fixed  rate. You will have 6 months once you graduate or cease half time attendance before you must begin repayment.
  2. The Unsubsidized Stafford Loan is available if you are not eligible for the Subsidized Loan. This loan is not need-based, but it accrues interest at a fixed rate as soon as you receive the loan funds. You have six months once you graduate or cease half time attendance before you must begin repayment.
Eligibility and Disbursement
  • You may cancel future disbursements of your loan at any time.
  • You must complete and pass a minimum of 6 credits to remain eligible for the Stafford Loan.
  • First-time college students borrowing a Stafford Loan will have their loan funds held for the first 30 days of the quarter before funds can be disbursed.
  • One-quarter loans are disbursed in two payments, one at the beginning of the quarter and one at the midpoint.

While you are at least half time (taking 6 or more credits), you can receive an in-school deferment on your existing Stafford Loans. You will not be required to make any principal or interest payments while you are enrolled at least half time in school. SPSCC will automatically report your enrollment information on the 10th day of the quarter to the National Student Loan Clearinghouse.

Exit Counseling

When you graduate or cease to be enrolled at least half time at SPSCC, you must complete Stafford Loan Exit Counseling. This will review the terms and conditions of your loan, provide an overview of the repayment process, and give details about available repayment options. You can fulfill this requirement by visiting and following the links to Exit Counseling.

Steps to Apply for Direct Federal Stafford Loans

Step 1

Receive and review your Financial Aid Award Letter.

Once you have been awarded, you can view award information in the FAM Student Portal.

Step 1

Complete Student Loan Entrance Counseling.

New students requesting a loan may receive loan Entrance Counseling online at Returning borrowers proceed to Step 4.

Step 1

Complete Master Promissory Note.

Complete Master Promissory Note at

Step 1

Review revised award letter and receive loan disbursements.

Review the Disbursement Schedule for Stafford Loans. Note: First time borrowers are required to have a 30-day delay for their first disbursement. 1 Quarter loans are disbursed in two disbursements, 1st at the regular disbursement date and the 2nd at midway through the quarter.