How To Apply For A Federal Stafford Loan
There are many different possible funding options for a student who is attending college. Grants and loans have become a very popular way to pay outrageous college bills, including fees for classes, books, and housing. A Federal Stafford Loan is one of the many available options that offer a wide variety of benefits to students. It is very easy to apply and receive this type of loan.
Benefits of applying for the Federal Stafford Loan include a very low interest rate. Also, almost every student is eligible for some type of funding when they apply for a Stafford Loan. Not only can graduate students apply, undergraduate students are welcome to apply for this loan as well. Furthermore, while a student is still attending college courses, the Federal Government will pay the interest on the subsidized Stafford Loan. Additionally, for every year the student attends college courses they may qualify for an elevated loan amount.
The best part about applying for a Stafford Loan is that there is no credit check in order to qualify. This means that students of all ages and at all income levels are welcome to apply. Even if one has terrible credit, the Federal Stafford Loan does not base a decision on credit rating of the student. This makes the Stafford Loan one of the most accepted loans that students apply for and use throughout their schooling. Finally, when college is complete, and the student has received their degree they are not required to begin to pay back their Federal Stafford Loan for 6 months. There is a grace period of 6 months following the graduation of the student on all Federal Stafford Loans. This allows time for students to become employed and have the financial resources to pay back their loan.
Next question is how does one apply for a Federal Stafford Loan? Applying for this type of financial funding is simple. First of all, one must fill out a FASFA application. FASFA stands for Free Application for Federal Student Aid. This is a student funding source that is granted from the government, and not required to pay back. Most students who qualify for the FASFA pell grant also qualify for some type of Stafford funding loan. One can apply online for the FASFA in a matter of minutes. Usually within a few days one will have a decision if they qualify. Students with large families and lowered income levels generally receive the FASFA very quickly. When one applies, they will need to submit and verify income and dependent information. It is also a qualification in order to apply for the Stafford that one must be a citizen of the United States, or at least a permanent resident.
Before you apply for a loan such as this, you must be enrolled in college courses as a half- time student or more. Furthermore, depending on which type of Stafford funding loan you are applying for, you may need to meet eligibility requirements based on income.
There are two different types of Stafford Loans that one may apply for. First, there is the subsidized loan. A subsidized Stafford is based on need. A student who qualifies for this type of loan is not required to pay any interest on the loan while they are still in school. Also, interest does not need to be paid during the 6 month grace period either. After the 6 month grace period following graduation, the student borrower should begin to pay back the loan and interest.
The other type of loan that a student may apply for is the unsubsidized Stafford. This loan is a little different than the subsidized loan due to the fact that the borrower is responsible for interest on the loan the entire time they are attending college. They may choose to pay the payments after graduation; however the borrower is responsible for all interest on their loan. This loan is non-need-based, and is awarded to many more students than the subsidized loan. There is also a 6 month grace period on the unsubsidized loan as well. These types of loans are awarded more often than the subsidized loan.
Interest rates on the Stafford are constantly lowering. It is stated that by the year 2012 that the Stafford interest rates will be as low as 3.4%. These are by far the lowest interest rate loans available to a wide range of students. If a student qualifies for a need based subsidized loan, they will be notified after filing for the FASFA. Additionally, at any time a student may apply for an unsubsidized loan for more than the amount that they have been approved on a subsidized loan. Many students carry more than one loan at a time. 6 months after graduation the borrower will be given information on payments that need to be made. If a student has trouble paying their loans, they may apply for a federal consolidation loan to assist with payments.
Federal loans such as these have been successfully used for numerous years. They offer the most affordable, low cost rates that are perfect for students of all income levels. A student should make sure that they have applied for the FASFA first, in order to obtain the most federal funding available to them.
Brett Keller is a representative for Your College Loans Online. Your College Loans Online is the ultimate resource page for college and student loans. If you are looking for information on applying for a federal stafford loan or qualifying for a federal parent plus loan, visit us online today!