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- The Federal Stafford Student Loan enables you to borrow from a bank, credit union, savings & loan association, or from the U.S. Department of Education. The loan is insured by the Federal Government. Repayment is a minimum of $50.00 per month, starting 6 months after graduation. The interest on these loans is below market rate (determined by the Federal Government). There are both subsidized and unsubsidized loans. The government pays the interest on subsidized loans while you are in school.