You must first fill out the FAFSA form through your
educational institution or online at
www.fafsa.ed.gov - This form will help determine which
loan products you qualify for, and whether you are a
dependent or independent student. There are several ways to
apply for the loan once the FAFSA has been filled out and
filed, and you can get these forms online at ED.gov or from your school or
private lender. Stafford Loans come as Subsidized and
Unsubsidized loans.
Subsidized loans are based on financial need, and the
government will pay interest on this loan while you are in
school and during the grace period (which is six months
long). After that, the student is responsible.
Unsubsidized loans are loans where the student is
responsible for all interest payments, and this loan can be
attained by any student who qualifies for the loan
regardless of financial need. Interest deferment options are
available.
Many students who apply for the Stafford Loans in either
category choose the Direct loan, in which the money comes
directly from the government and goes directly to the school. Others choose private lending
institutions, who often offer the student other kinds of
savings like fee-free applications, reduced rates.
Other miscellaneous forms will need to be filled out,
signed, and submitted; however, the process is not as
difficult as it sounds as long as you have all your
information handy and quickly accessible. A way to keep
track of everything is to create a checklist for yourself
complete with due dates and boxes you can check off when
your form has been submitted. Next >
Stafford Loan limits.
