The Federal Stafford loan is subsidized by the Federal Government, which means the Federal Government pays the interest while the student is in school. Students need to complete the Free Application for Federal Student Aid to qualify for this program. The Federal Subsidized Stafford Loan is awarded based upon financial need of the student. There is no priority deadline to qualify for this program. Students need to enroll at least half-time to be eligible for this program.

Beginning in the fall of 2007, the base annual limits for Federal Stafford Loans (combined subsidized and unsubsidized) are:

• $3,500 for 1st year undergraduate students base amount. Additional unsubsidized loan amount $2,000.
• $4,500 for 2nd year undergraduate students base amount. Additional unsubsidized loan amount $2,000.
• $5,500 for 3rd & 4th year undergraduate students base amount. Additional unsubsidized loan amount $2,000 (Bachelor of Applied Science Degree Only)

There is a six month grace period before repayment begins, which means students do not begin repaying the loan until six months after the student either withdraws, graduates, or falls below half-time status. This loan may also carry some teacher cancellation provisions.

Students will need to go through a lender to process their Federal Subsidized Stafford Loan. Students may wish to contact the lender to become aware of fee discounts and repayment options they offer.

The three main lenders BSC processes loan through are as follows: