Financing College- Use the Stafford Student Loan

Need Aid- Try a Stafford Loan

Enrolling in college is a goal that every high school graduate should have. A college education opens many new doors. However, oftentimes high school graduates do not have the finances to even pay college tuition let alone everything else. Do not allow this roadblock to stop you! Many options are available to you! Applying for a Stafford student loan is one of your options.

<b>Stafford Student Loans</b> are given out by the Department of Education. They are the most used out of all the student loans offered by the Federal government. Stafford loans are available to both graduates and undergraduates and being in terrible financial need isn�t necessarily required.

To be eligible to apply you have to be a United States citizen who will be enrolling in a United States college or university, you must be in school at least half-time, and you must submit a FAFSA.

The interest rates on the Stafford student loan are fixed. It only changes once a year. The rate of 6.8% was chosen for this year.

There are two different kinds of Federal Stafford loans: unsubsidized and subsidized.

<b>Unsubsidized Stafford Loans</b> can be taken out by just about any student despite their income. Even if his or her family makes $400,000 a year, they can still apply. The interest rates will begin as soon as you start college. Nevertheless, you may defer payment of interest until after you graduate if you so choose.

<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 has to be completed every year.

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 doesn�t accrue and payments do not start until 6 months after you graduate. Once you graduate, you must paying interest yourself.

For those who have subsidized loans, <b>undergraduates</b> are allowed to take out loans between $2500-$5500 per academic year. <b>Graduate Students</b> may borrow up to $8500 a year. Your money will be sent to your college or university. Students who have taken out unsubsidized loans are permitted to borrow more.

You can get these loans straight from the government or from private lenders. The government has a fixed rate for Stafford loans so private lenders are usually better since they must entice you to borrow from them instead of the government.

NOTE: Use of this article requires links to be intact.

Comments? Questions? Email Here

© HowtoAdvice.com

How to Advice .com