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The total amount of Stafford loans, including both subsidized and unsubsidized, that undergraduates can borrow isfor dependent students andfor independent students. Guaranty agencies pay off the lenders when borrowers default, and in turn, are reinsured by the Department of Education. The federal student loan programs are highly regulated by Congress and the U. There are, however, a chta important differences in available repayment plans for FFEL and Direct borrowers. There are even ways to cancel these loans in limited circumstances. Sgafford fixed interest rate for undergraduate Stafford loans first disbursed on or after July 1, and before July 1, is 4.

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