Going to college is a goal that every high school graduate should have. Many opportunities are provided to college graduates that arent to everyone else. However, oftentimes high school graduates do not have the money to pay for college. Dont let this problem stop you! You have many options! Applying for a Stafford student loan is one of your options.
Stafford Student Loans are given out by the Department of Education. They are the most popular Federal student loan. Federal Stafford loans are available to both undergraduate and graduate students and being in terrible financial need isnt necessarily required.
In order to be eligible, to apply you have to be a US citizen who is planning on attending a college or university within the United States, you must be in school no less than half-time, and you must submit a FAFSA (Free Application for Federal Student Aid).
The Stafford student loan has a fixed interest rate. It does not change except once a year. The current percentage rate is 6.8%.
Subsidized and Unsubsidized are the two types of Stafford student loans.
Unsubsidized Stafford Loans are available to almost every student regardless of their income. Even if his or her family makes $400,000 annually, they can still apply. The interest rates will begin as soon as you start college. Nevertheless, you may defer payment of interest until after you graduate if you so choose.
Subsidized Stafford Loans are only given to those students who are in great financial need. To prove that you do not have the funds, you must file a FAFSA application. This must be done every year. You can find this application at FAFSA.com.
Those who have subsidized Stafford loans do not have to pay interest while they are in school. The government will pay it for you. Interest does not accrue and payments do not begin until 6 months after you graduate. Again, you must be in school at least half-time. Once you graduate, you must begin making payments yourself.
For those who have subsidized loans,
undergraduates are permitted to borrow between $2500-$5500 per year.
Graduate Students can borrow up to $8500 per year. The money is mailed straight to your college or university. Those who have unsubsidized loans are allowed to borrow more.
These loans are available through the government or through private lenders The government has a fixed interest rate for Stafford loans so private lenders are generally better because they must convince you to get the loan from them rather than the government.
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A college student herself, Elise Fisher enjoys writing articles for her website
About Student Loans. Make sure you check out the
Stafford Student Loans page to learn more about the Federal Stafford loan.
