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The Department of Education gives out Stafford Student Loans. They are the most common of all federal student loans. Stafford loans are given to both undergraduate and graduate students and being in terrible financial need isn�t necessarily required.
In order to be eligible, you have to be a United States citizen who will be attending a college or university within the US, you have to be attending school at least half-time, and you must turn in a FAFSA (Free Application for Federal Student Aid).
The Stafford student loan has a fixed interest rate. It only changes once a year. The current percentage rate is 6.8%.
There are two different kinds of Federal Stafford loans: unsubsidized and subsidized.
Unsubsidized Stafford Loans are available to nearly any 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 can defer payment of interest until after you graduate if you so choose.
Subsidized Stafford Loans are available based on financial need. You must turn in a FAFSA application in order to prove that you need financial aid. This must be done each 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 doesn�t accrue and payments don�t begin until 6 months after you graduate. After graduation, you will paying interest yourself.
For those who have subsidized loans, undergraduates are permitted to take out loans between $2500 and $5500 per academic year. Graduate Students may borrow up to $8500 a year. Your money will be mailed to your school. Those who have unsubsidized loans are permitted to borrow more.
You can get these loans straight from the government or from private lenders. The government has a fixed rate for Stafford loans so private lenders are usually better since they have to convince you to get the loan from them rather than the government.
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Category: Reference and EducationFinancing College- Use the Stafford Student Loan was written by:Author:Jesse FisherAdded: Fri, 22 Jun 2007 21:35:10 -0400 This Article Has Been Read 214 times View all Jesse Fisher's articlesAbout the Author: Author Jesse Fisher likes composing articles for his clients including Transamerican Medical, a business that resells Philips Medical equipment and parts. See also the Imaging Centers; online directory. (You may republish this article online IF all links are kept intact.) |
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