Federal Stafford Loans are student loans by the government specifically the department of education. They offer low interest rates student loans for anyone applying to study in a US college or university. There are also Stafford student loans offered by the private banks and financial institutions. However, these Stafford loans are offered through the federal family education program. So in a sense, the funds from the student loans are Still from the government. They usually offer lower interest rates than federal Stafford loans. Some colleges and universities also have their own student loan programs. These schools are under the federal direct loan program. The government will disburse the funding directly to the school and then to you. One disadvantages of choosing a school’s student loan program is that you do not have the choice of comparing different lenders and then picking which Stafford student loan offer to take. The interest rates and student loan amounts will differ from school to school so you may want to check with them before deciding. Each program may be subsidized or unsubsidized. If the student has demonstrated need, the loan can be subsidized (government pays the interest while the student is in school). If the student does not have need, then the interest will be charged from the time the loan is disbursed until it is paid in full. The maximum a dependent student can receive is related to the year in school. First year students receive up to $2,625, 2nd year is $3,500, 3rd and 4th years are $5,500 and graduate students can receive up to $8,500.