Use Federal Stafford Loans to Pay for College
The Federal Stafford Loan Helps Needy College Students
Going to college after graduation is a dream all high school students ought to have. A college education opens many new doors. Nevertheless, many high school graduates don�t have the money to pay for college. Do not give up your dream because of lack of finances! You have many options! One of these options is to apply for a federal Stafford loan.
The Department of Education gives out <b>Stafford Student Loans</b>. They are the most common of all federal student loans. Federal Stafford loans are available to both undergraduate and graduate students and you don�t necessarily have to be in great financial need.
In order to be eligible, to apply you have to be a United States citizen who will be attending a college or university within the US, you have to be in school no less than half-time, and you must submit a FAFSA.
The interest rates on the Stafford student loan are fixed. It does not change except once a year. The rate of 6.8% was chosen for this year.
Subsidized and Unsubsidized are the two types of Stafford student loans.
<b>Unsubsidized Stafford Loans</b> are available to nearly any student despite their income. The moment you start college the interest rates will begin. Nevertheless, you can defer payment of interest until after graduation.
<b>Subsidized Stafford Loans</b> are only given to those students who are in great financial need. To prove that you do not have the funds, you must file a FAFSA application. This must be completed every year. You can find this application at FAFSA.com.
Those who have subsidized Stafford loans do not have to pay interest while they are in school. The government will pay it for you. Interest does not accrue and payments don�t start until six months after you graduate. Again, you must be in school at least half-time. Once you graduate, you must paying interest yourself.
For those who have subsidized loans, <b>undergraduates</b> are permitted to take out loans between $2500 and $5500 per year. <b>Graduate Students</b> can borrow up to $8500 per year. Your money will be sent straight to your college or university. If you have an unsubsidized loan, you are allowed to borrow more.
These loans are available through the government or through private lenders The government has a fixed interest rate for Stafford loans so private lenders are typically better because they have to entice you to get the loan from them rather than the government.
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About the Author
Being a college student herself, Elise Fisher loves writing articles that help students finance their higher education. To learn more about Stafford Student Loans and other federal loans, follow the link. Don't miss the Low Interest Student Loans page.
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