About Stafford Loans
Continuing ones education can be an expensive yet highly worthwhile goal. The good news is that you need not necessarily pay for the entire amount of your college education directly out of pocket or immediately. Knowing your financial aid options can be as important as you grade point average.
The Stafford loan program is an excellent source of financial aid for a great many students because the loan is guaranteed by the federal government. Your school of choice will likely participate in one of the two Stafford programs- The Federal Family Education Loans program or the William D. Ford Direct Loan Program. The Direct Loan Program is directly backed by the federal government acting as the fiscal lender while credit unions, baking institutions or other financial institutions provide the lending for the Family Education Loan program
Subsidized and Unsubsidized
Subsidized and unsubsidized. There are two different types of Stafford loan; subsidized and unsubsidized. A standard subsidized loan relieves the student of the need to pay on the interest of the loan principal as that is picked up and paid for by the federal government. This type of loan is typically sought by those with particular financial need. A subsidized loan requires that the student be responsible for making payments on the interest of the principal out of pocket while they are in school but you can defer payment of that amount and have it added to the principle, but that will increase the amount of your loans. Both loans permit a six-month grace period on loan principal repayment that kicks in once you graduate, leave school or drop below a half-time enrollment.
Eligibility
Eligibility for a Stafford loan is not dependant upon your financial credit rating, yet you will need to fill out a Free Application for Federal Student Aid (FAFSA) form to determine if you are either an independent student or a dependant with other means of fiscal support. You can pick up a FAFSA form from your collage or you can fill the form in online via the school’s website.