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Stafford Loans

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How to apply for Stafford Loans

Stafford Loans may be obtainable by completing an application provided by Federal Student Aid (FSA). When applying for both Stafford Loans and Federal Perkins you will not be required to fill out to separate applications. But, you will need to sign a promissory note and a legal document that states you agree to pay your loans according to the terms note. Be certain to carefully read and understand this note and always keep a copy in a safe place. jordan 8 playoffs jordan 8 playoffs playoff 8s cheap playoff 8s jordan playoffs jordan 8 playoffs playoff 8s playoff 8s 2013

Stafford Loan Allowance

When using a Stafford Loan the amount you can borrow depends on a few things, what year you’re in school, if you are a dependant student, and whether you receive subsidized or unsubsidized Stafford Loans.

Subsidized Stafford Loan

If you are able to provide information showing that you are in financial need, you can borrow a subsidized FFEL or Direct Loan. A subsidized loan will cover some or all of that financial need (subsidized loan amount may not exceed your financial needs).

The United States Department of Education will pay your subsidized loan interest for half the time you are in school, for the initial six months after you complete school, and during periods of loan payment postponements.

Unsubsidized Stafford Loan

It is possible to receive loan funds that surpass your subsidized loan limits, even if you are unable to show financial need. These types of loans are known as unsubsidized loans.

With an unsubsidized loan you are responsible for the interest accrued throughout the duration of loan and until it is paid in full. There is a couple of way that you may choose to pay your loan interest. Your can pay the interest as you go (pay interest and principle at the same time) which will requires higher monthly payments but saves you money in the long run. You may choose to allow the interest to accumulate by paying principal only thus lower monthly payments. This payment method however, is not recommended because it will definitely cost the borrower more money in the end.

You are allowed to receive subsidized and unsubsidized loan for the same enrollment period, so long as the combination doesn't exceed the annual loan limit.

Subsidized and Unsubsidized Loan Limits

The amount you can borrow will be less during periods of study shorter than an academic year. If you receive other financial aid that is used to covers a portion of the cost of attendance, you could receive less from your subsidized or unsubsidized loans.

Your chosen academy can refuse to certification of your loan application, so long as they provide a written explanation. The school may also certify a loan for an amount less than what you otherwise would be eligible to receive. If your school certifies an amount less than what you qualify for, they must provide a written explanation of why such action was taken. The school's decision is always final and cannot be appealed to us.

Stafford Loans will come with some additional charges other that the interest. You will also be charged a fee up to 4% of your loan, which will be deducted proportionately from each loan disbursement. Do to this deduction the actual amount you receive will be less than the amounts you are borrowing.

The loan money must first and foremost be used to pay your tuition, fees, and housing. You will receive any remaining funds either by cash or check. You have the option to allow the school to retain the funds for future academic use.

Call 1-800-4-FED-AID if you have any additional questions about Stafford Loans.

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