The Opportunity of Federal Stafford Loans
The First Choice
One of the most familiar names in Federal student loans is Stafford. Stafford Loans are low-interest loans guaranteed by the government. They are awarded to both undergraduate and graduate students.
No Interest to Pay with Subsidized Loans
A subsidized Stafford loan is one made to those applicants who can fulfill the criteria for financial need. As long as the student is enrolled at least half-time in either an undergraduate or graduate program, the interest on the loan is paid by the government.
Unsubsidized Stafford Loans For Anyone who is Eligible
An unsubsidized Stafford loan is available for any student, regardless of financial need. The government does not, however, pay the interest on the loan. Interest accrues from the day the loan is paid out to the student.
Apply at Colleges, Banks, and Online
The Stafford Loan applications are available through a variety of sources. Anywhere you see a link to a FAFSA application; you can apply for a Federal Stafford Loan. You can also go directly to the Federal Government’s website above. Most states provide a helpful student loan site that not only includes information on how to apply for the Stafford loan, but also how to access state loan programs, available for in-state residents.
Also, many banks, such as SunTrust, Bank of America, and Wachovia, among others, all have expanded their web presence to include helpful and interesting student loan pages that offer many tips and resources for saving for college, along with FAFSA applications for Stafford loans and other Federal student loans.
If you are approved for a Stafford loan, the loan is disbursed by the college or university where you will be attending. Loans are awarded annually, so you must reapply for each academic year.
Loan Amounts for Your University Financial Aid
Sometimes the amount of your loan award is based on other loans you are also carrying. The limit can change from academic year to year, as well. On average the total loan amount for each academic year is between $2500 and $5000.
Repayment Options for Federal Stafford Funding
Repayment of Stafford Loans, subsidized or unsubsidized, begins 6 months after a student ceases to be enrolled at least half-time in a college program. The loans are flexible enough to allow for deferments if hardship or other criteria can be proven. A typical repayment schedule lasts about 10 years.
