Stafford Loan

The Stafford loan is the best federal loan program for higher education students for many reasons. The following will outline the requirements and features offered.

• You must first file a Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov .

• Your school will determine your eligibility based on the FAFSA information provided.

• By considering your financial need an unsubsidized Stafford loan, or a combination of both subsidized and unsubsidized Stafford loans will be awarded to you.

• Stafford loans require no credit check and no cosigner to be approved.

• All Payments on Stafford loans can be deferred as long as you maintain at least a half time registration status in school.

• Subsidized Stafford loans are need-based. All interest is paid for by the federal government as long as you maintain at least a half time status as a student and during a six-month grace period after graduation. The loan will begin to accrue interest after the grace period is over.

• Unsubsidized Stafford loans will accrue interest while you are in school. They are not need based loans and are guaranteed to each student as long as they file the FAFSA form and are not in default of prior student loans or have reached their aggregate limit.

• All Stafford loans have a fixed interest rate

• Interest rate for undergraduate subsidized Stafford loans first disbursed July 1, 2011–June 30, 2012 is fixed at 3.4%

• For all unsubsidized Stafford loans disbursed to undergraduates and graduate students, the interest rate is fixed at 6.8%.

• For all subsidized Stafford loans disbursed to graduate and professional students, the interest rate is fixed at 6.8%.

• You must complete a master promissory note and entrance interview with the federal government through Direct loans.

• Use this link to begin the process: https://studentloans.gov/myDirectLoan/index.action

• There is a limit as to how much Stafford funding you can have per year based on your grade level

Ken’s Tip – If you need a loan for college, the Stafford loan will be your first and foremost option. Just file your FAFSA, complete the Master Promissory note and Entrance interview with Direct loans and make sure you have accepted the loan as part of your college’s financial aid award letter. Not completing the paperwork will cause delays in your disbursal and could lead to missed registration and non-admittance to your dorm due to delinquent payment of your college bill. To get ahead, go online and complete your master promissory note and entrance interview online asap.