Going to college is a goal that every high school graduate should have. A college education opens many new doors. However, high school graduates often do not have the finances to pay for college. Do not allow this roadblock to 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 used out of all the student loans offered by the Federal government. Federal Stafford loans are given to undergraduate and graduate students and being in terrible financial need isn�t necessarily required.
To be eligible to apply you must be a United States citizen who is planning on attending a United States college or university, you must be in school no less than half-time, and you must submit a FAFSA.
The interest rates on the Stafford student loan are fixed. It does not change except once a year. The current percentage rate is 6.8%.
You have two options when it comes to Stafford loans: unsubsidized and subsidized.
Unsubsidized Stafford Loans can be taken out by almost any student regardless of their income. The interest rates will begin as soon as you start college. Nevertheless, you may defer payment of interest until after you graduate.
Subsidized Stafford Loans are only given based on financial need. You must turn in a FAFSA application in order to prove that you need financial aid. This must be done annually. 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 six months after college graduation. Again, you must be in school at least half-time. After graduation, you must begin making payments on your own.
For those who have subsidized loans, undergraduates are permitted to take out loans between $2500-$5500 per year. Graduate Students are permitted to borrow up to $8500 per year. The money is mailed to your college or university. Those who have unsubsidized loans are permitted to borrow more.
These loans are available through the government or through private lenders The government has a fixed rate for Stafford loans so private lenders are usually better because they must convince you to borrow from them instead of the government.
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Elise Fisher enjoys writing articles that help college students finance their higher education. To learn more about Stafford Student Loans and other federal loans, follow the link. Don't miss the Low Interest Student Loans page.
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