Stafford loans are for undergraduate, graduate, and health professional students who want a low-cost loan backed by the federal government. There are two kinds: subsidized and unsubsidized. You're eligible for a subsidized Stafford loan if you are in school at least half-time and can prove financial need. While you're enrolled, the federal government pays the interest on your loan. With an unsubsidized Stafford loan, you won't have to pass a credit check and your interest starts accruing as soon as it is disbursed to you. Either way, you must be a U.S. citizen or permanent resident.