The Federal Stafford Loan was created with the intent to help all Americans achieve their higher education goals. These loans and many other types of US government funding for school are made available to students who fill out a FAFSA or Free Application for Federal Student Aid. There’s a lot to this comprehensive form and a great deal to the Stafford loan as well, so taking a look at these 8 primary points of consideration will help immensely prior to completing the FAFSA.
1.)Basic Requirements. The basic requirements for this type of loan include being a US Citizen. Additionally, a student must be enrolled at least half-time in an accredited educational institution.
2.)Status of Other Federal Loans. In order to qualify for any aid on the FAFSA, you must not be behind or in default on any type of federal funding.
3.)Create a Mock FAFSA. By downloading a FAFSA and printing it out, a student can fill out the form in its entirety in order to collect all information needed. This is important because the FAFSA may require supporting documentation such as tax records, bank statements, or asset information.
4.)Low Interest Rates. The Federal Stafford loan offers students very low, fixed interest rates. These rates range between 3.4% and 6.8%, depending upon the academic year and type of loan.
5.)Large Maximum Loan Amounts. For dependent undergraduate students, the maximum Stafford loan is $5500. For independent undergrads the maximum increases to $9500 and $20500 for graduate and professional students.
6.)Loan Forgiveness. Depending upon a student’s field of study and career path, it is possible to have some or all of this type of federal educational funding forgiven. This includes some types of military service, working as a teacher in a school that services low income families, or through other types of public service.
7.)Help if You Get Into Financial Trouble. If you have difficulty making your payments, you can ask for and in many cases receive a deferment or forbearance.
8.)Subsidized and Unsubsidized. The two primary types of Federal Stafford loans are Subsidized and Unsubsidized. With the former interest does not accrue while the student is still enrolled, while in the case of the latter interest accrues immediately upon loan disbursement.
These are just 8 crucial points to obtaining this and other types of federal funding. Don’t forget that the FAFSA also offers other loans, grants, scholarships and federal work study programs in addition to the Federal Stafford Loan.
Want to find out exactly how much money for college you can get with a federal Stafford loan?
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