For most of the students getting financial aid is always a problem.
The federal government gives out these loans. These stafford
loans are given to students who have got admission in any certified
educational institution. The student starts repaying the loan
after the graduation is completed.
loans are either subsidized or un-subsidized. The interest rate
is charged only when the repayment period starts when you take
a subsidized loan. But in case of an un-subsidized loan you
will have to pay the interest as soon as the loan is given out.
The Stafford Loans are of two types:
Subsidized Stafford Loans: these are given out based
on the financial needs of the student. The student is required
to prove the capabilities to the government and the financial
help that he/she wants. In this type of Stafford loan the government
is liable to make payments towards the interest of your stafford loans for a minimum duration of half time
of the course.
* Unsubsidized Stafford Loans: with these loans
the student is required to pay the interest rate while still
in the college.
When you take a Stafford loan you are benefited in the following
* With stafford loans there is no credit check carried
out if the student qualifies. Besides if the student is a U.S
citizen has been academically strong then the loan is approved
* The interest rates on these loans are lower as compared to
the other loans. Moreover the amount can be used for meeting
any expenses related to the education.
* The payback terms for the loan are flexible and can be extended
to a period of 30 years if
the student opts for debt consolidation.
* You get the benefit of deferring on the loan once a year up
to a time limit of three years.
The interest rates paid on these loans are tax deductible.
When you wish to get a stafford loans then you are required to fill out
an application form for the Federal Student Aid, which is free
of cost. The procedure of filling the form can be both in person
as well as can be accomplished electronically. To get a federal
student loan you are supposed to be a citizen of the United
States or you should be an eligible non-citizen who has a high
school certificate or a diploma or besides this if you even
have a General Education Development certificate and you are
in dire need of money to carry on your studies. Besides this
you should also be preparing to get admission into an educational
Apart from the necessary qualifications required if you are
caught on charges of possessing or having drugs then you could
be denied of the federal direct student loan. But still there
are some chances that you can get the loan so you should fill
out the form and keep on checking on the status of your loan
time after time. When you apply for a Federal student loan it
is advised that you take the loan directly from the government
and do not approach any private lenders or agencies as there
are chances that you might end up in a scam. Every year there
are many agencies that make millions of dollars by doing this.
The Stafford Student Loans are given on the basis of the need
of the student that is assessed by the government. In case the
student is taking an unsubsidized Stafford loan then the need
is not evaluated. Besides your needs being evaluated the Department
would also like to know about the family income and the Expected
Family Contribution. This would help the government determine
the amount of loan that you would require. You would have to
provide these details with the form that you submit with the
Federal Student Aid department.
If after some time you feel that the interest rate for your
Stafford student loan is high then the government also provides
you the opportunity to consolidate your student loan as well.
With a federal direct student loan consolidation you can get
the loan at a lower interest rate. In case you have a problem
in meeting the expenses and you are close to defaulting on your
loan then you can consider a federal student loan debt consolidation.
If you consolidate your federal student loan when you are still
in school then you can get a grace period of six months before
you start payment towards the federal student loan consolidation.
Students who apply for Federal debt consolidation loan can get
the privilege of either repaying less amount of the debt each
month or increase the time duration of repayment. By taking
Federal debt consolidation loan students can combine the various
loans that they would have taken under different schemes and
combine all of them into one. By doing this, the student is
liable to make only one payment that has to be made to the government
of the United States. These loans have been made more feasible
and the payments have been divided into four payment plans,
which are quite flexible. Out of these four payment plans two
would take into consideration your income or the expected income.
Make sure that when you apply for the Stafford student loans
then you have all the documents ready. Most of the times the
students prefer to go through the process of applying for the
loan through a private mortgage broker and end up getting into
trouble so it is better that you get these loans directly from
the government and not from any private agency. Besides there
are very few offers available so it is better that you decide
on your loan fast and apply with all the necessary documents
that are required.
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