Going to college after graduation is a dream all high school students ought to have. Many opportunities are provided to college graduates that arent to everyone else. However, many high school graduates do not have the necessary funds to even pay college tuition. This need not worry you! You have many options! Applying for a Stafford student loan is one of your options.
Federal Stafford Loans are given out by the Department of Education. They are the most popular Federal student loan. Stafford loans are given to graduates and undergraduates and being in terrible financial need isnt necessarily required.
To be eligible you must be a United States citizen who is planning on enrolling in a college or university within the US, you have to be attending school at least half-time, and you must turn in a FAFSA.
The Federal Stafford loan interest rates are fixed. It only changes once a year. Right now its at 6.8%.
There are two different kinds of Federal Stafford loans: unsubsidized and subsidized.
Unsubsidized Stafford Loans can be taken out by nearly every student regardless of their income. 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.
Subsidized Stafford Loans 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 done each 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 does not accrue and payments do not start until 6 months after you graduate. Again, you must be in school at least half-time. After graduation, you must paying interest yourself.
For students with subsidized loans, undergraduates are permitted to borrow between $2500-$5500 per year. Graduate Students can borrow up to $8500 per year. Your money will be sent to your school. If you have an unsubsidized loan, you are allowed to borrow more.
You can get these loans straight from the government or from private lenders. The government has a fixed interest rate for Stafford loans (6.8%) so private lenders are typically better since they have to convince you to borrow from them instead of the government.
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