There are many ways of helping students in their education. One of the best is the Stafford Loan. As we all now the costs of the education are very high and the scholarships or grants may not cover all of them. The Stafford Loan gives the chance to make it.
The loan is repaid by the student. There are no requirements to pay during the studying at least half-time and you have 6 months grace period after leaving the school.
The loans disbursed between July 1, 2009 and July 1,2010 have the fixed interest rate of 6.8% or 5.6% for the undergraduate subsidized Stafford( if you qualified ).
Subsidized and unsubsidized loans
What is the difference between subsidized and unsubsidized loans?
- In subsidized loans the government pays the interest while you are at school , during the grace or deferment period .
- In unsubsidized loans the borrower pays the interest and the government doesn’t offer any kinds of assistance. There are two possibilities. You can pay them while you are at school or add to the principal balance.
Stafford loan dees and repayment
The Loan fees are 1.5% of the borrowed amount so they are very low and include: 0.5% (origination fees) and 1.0% (federal default).
The repayment period is 10 years but you may repay it earlier. Its called prepayment and its not penalized. The Stafford Loan offers also very flexible repayments options , possibility for consolidation loans during the repayment or grace period and there is no credit-check required.
- The are free types of the repayment programs:
- Level. You will pay fixed monthly amount of money on the principal and interest.
- Graduated. You will pay small amount of money at the beginning and it will increase during the repayment period.
- Income Sensitive. The monthly payments are based on the gross income.
If you want a Stafford Loan for the school, who you are interested in, you have to participate in the Federal Family Education Loan Program. You have to be a US citizen or eligible non-citizen , have no default loans and be enrolled at least half-time while working toward for graduate degree, undergraduate or certificate.
Applying for a Stafford loan
Documents and tasks needed to apply for a Stafford loand:
- Complete the Free Application for Federal Student Aid.
- Receive a SAR. It stands for a Student Aid Report which tells what kinds of federal funding you can get.
- Receive students aid awards letters from schools
- Compare all propositions and choose the school.
- Apply for a Stafford Loan online what is more recommended or fill the Stafford Loan application.
What happens with the money?
The money comes directly to your school. First are paid all costs of studying like tuition, books etc. The money that remains after all charges may be received to you in cash or in check or stay in a school account
How much can you borrow - depends on: the annual limits which are established each 1 July , students (which year of studying , are you dependent or independent , graduated or undergraduated). Some students f .ex studying at medical schools may qualify for higher limits.
The Stafford Loan is a very comfortable and flexible loan. In comparison with other loans has less requirements and more benefits .It is for both graduate and undergraduate students and don’t require credit check or co-signer .
What is also very important - you don’t have to think about repayment while you are at school. If you are a student and want to feel safe and comfortable with your loan this one is the best for you.