Federal Stafford Student Loans
What Are Federal Stafford Student Loans?
Federal Stafford student loans are fixed-rate, low interest loans which are made available to undergraduate college students who are attending accredited colleges, universities, or schools, and are at least part time students (college students carrying enough credits to be considered a “part time” college student”). The most commonly applied for and obtained Federal student loans, are the Federal Stafford student loans.Difference Between Unsubsidized And Subsidized Federal Stafford Student Loan?
The main difference between a subsidized Federal Stafford Student Loan and an unsubsidized Federal Stafford Student Loan simply comes down to who is responsible for paying the Student Loan interest that accrues while you are attending college. With unsubsidized Federal Stafford Student loans you (the borrower) are responsible for all of the interest that accrues on your unsubsidized Stafford loan while you are in school, but the interest is still deferred (meaning you don’t have to pay on it) while you are attending college.However when you graduate college all the deferred interest that has been accruing while you were attending school will then be added to the principle of the loan (amount of the Federal Student Loan), thus increasing the amount of the loans principle that you will have to pay back.
In the case of subsidized Federal Stafford Student Loans, the federal government will pay off the interest on subsidized Stafford loans while you attend college, and during the deferment period(s). Many college students, who meet the eligibility requirements for a subsidized Federal Stafford Student Loan, will apply for this type of student loan.
Am I Eligible For Federal Stafford Student Loans?
In order to gain eligibility for a Federal Stafford Student Loan must complete the following steps;1. First, you must meet the federal eligibility requirements to receive Federal Student Aid (which encompasses Federal Student Loans). According to the FAFSA website in order to be eligible to receive Federal Student Aid you must meet the certain requirements listed below.
a. Be a U.S. citizen or eligible non-citizen
b. Have a valid Social Security number (unless you're from the Republic of the Marshall Islands, the Federated States of Micronesia, or the Republic of Palau)
c. Comply with Selective Service registration, if required (see www.sss.gov for more information)
d. Have a high school diploma or a General Education Development (GED) Certificate or pass an approved ability-to-benefit (ATB) test.
e. You must not owe a refund on a federal grant or be in default on a federal student loan
f. You must have financial need (except for unsubsidized Stafford Loans)
g. You must not have certain drug convictions (learn more at www.fafsa.ed.gov)
2. Once you have checked off all the above requirements then you must complete and submit a FAFSA application. FAFSA stands for Free Application for Federal Student Aid, and any college student wishing to apply for any federal student aid (Federal Student Loans) must complete this application at www.fafsa.ed.gov.
3. For subsidized Federal Stafford Student loans, you must have financial need as determined by your school.
4. You must be accepted for enrollment or must currently be enrolled at a college, school, or university (as a part time college student or full time college student, but no less) that participates in the Federal Family Education Loan Program. You can check this out by simply contacting your schools financial aid department.
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