Subsidized Stafford Loans
The subsidized Stafford Loan is recommended for those students who have been granted eligibility. This loan can be used to swathe a portion of the student's cost of education. The primary advantage is that the U.S. Department of Education pays the interest that ensues on this loan while the student is in school or during any loan deferment period.
The student would need to assure that he or she is in school and attended at least half-time, based on the school's norms of half-time status. The Department of Education will swathe all interest charged during the period the student is enrolled at least half-time and for the six month grace period given to the borrower after graduation or separation (ceasing to be attended at least half-time).
And if the borrower, while in refund, should require taking out a deferment such as an unemployment deferment or because of a return to school, the government would pay the interest during those times also.