The Stafford Loan is one of the most popular federal college student loans. Stafford loans are low interest
student loans (currently fixed at
6.8 percent for UnSusidized: and 3.4 percent for Subsidized) have a subsidized and unsubsidized option, a
long grace period of six months or graduating or leaving
school. Federal students loans are often consolidated in to a
single new federal Stafford loans, with only one payment each
month, instead of paying multiple student loan bills each
month. These facets of this Federal loan make the loan's
monthly payments cheaper but extend the life of the loan
Click here for the basic facts about the Federal Stafford Student Loan program, from
the DOE and how it affects college students and collegiate
families, during the important formative years and in the real
world later on.
If you do not qualify for a
Federal Stafford Student Loan, an alternative to the Stafford is the Private Student Loan from independent banks and loan companies. No FAFSA is required
when you apply for an alternative, or private student loan
for college and school expenses. If you're
a college student or a parent or guardian interested in private student loans,
be sure to exercise your right to shop lenders and companies
to find the best deal. Thoroughly research all
federal aid first, federal college student loans and grants from
your school before borrowing from private companies and organizations.
Start with the official FAFSA from the U.S Department of Education.
A 2011 Article on the Federal Stafford loan:
Many students with financial need qualify for a low interest Federal Stafford Loan that can help with their tuition and other educational expenses. Application for these loans is simple and can be done online; a basic requirement would be meeting income restrictions and attending school at least half time.
What is a Federal Stafford Loan?
These are the same loans that were previously called a Federal Guaranteed Student Loan. In 1988, the program was renamed the Robert T. Stafford Student Loan program, to honor of U.S. Senator Robert Stafford. The program offers fixed-rate, low interest loans to undergraduate and graduate or professional students. Some loans are subsidized by the government to pay interest on the loan while the student is still in school; other loans are non-subsidized.
How Can I Apply for a Federal Stafford Loan?
1. Submit a Free Application for Federal Student Aid online (FAFSA) at http://www.fafsa.ed.gov/
2. Alternatively, mail in a completed PDF FAFSA
3. Call 1-800-4-FED-AID to request a paper FAFSA. Alternate phone: 219-337-5665, TTY 1-800-730-8913
Who is Eligible for a Federal Stafford Loan?
1. Students that are U.S. Citizens, permanent U.S. residents and eligible non-citizens already accepted for school enrollment
2. Students that have had their financial need determined by their school
What are Other Requirements?
1. Once approved, complete a Master Promissory Note (MPN). This is your agreement in legal form to repay the loan to the Department with full interest and fees.
2. Repayments begin when school is completed or you drop below half time attendance.
3. Payment of any origination fee.
Federal Stafford Loans vary in amounts from $3,500 to $224,000, depending on individual circumstances and programs of study. Interest rates can be as low as 3.40% for undergraduate loans.
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