Stafford Student loan
Stafford Student loan also called Federal student loan or Federal Stafford loans are fixed-rate student loans for undergraduate students attending a college or university that participates in the Federal Family Education Loan Program. Stafford Student loans can be used to pay tuition, and other eligible school expenses.
Stafford Student loan
Stafford loans are the most commonly used loan. They are not based on credit, and they can be divided in two types, subsidized or unsubsidized depending on the student’s financial need.
1. Subsidized federal student loan
The interest of the loan is subsidized (or paid) by federal government, not by the student. Interest does not accrue on the loan during any future deferment period or while you are in school at least half time. Subsidized federal student loan is federally guaranteed loans based on financial need. You must be in big debt in order to get subsidized loan.
2. Unsubsidized federal student loan
The interest of the loan paid by the student. Interest will accrue from the time loan is disbursed to the school but can be deferred until 6 months after the student graduated. Unsubsidized federal student loan are federally guaranteed loans that are not based on financial need.
Here are what you should do if you want to be eligible for Stafford student loans:
- You must have submitted a FAFSA
- You must have financial need as determined by your school for subsidized Stafford loans.
- You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen
- You must be enrolled or plan to enroll at least haft time
- You must be accepted for attend or enrollment a school that participates in the Federal Family Education Loan Program.
- You must not be in default on any education loan or owe a refund on an education grant.
Source: http://www.staffordloan.com/stafford-loan-info/stafford_faq.php
If you want to learn about Stafford Student loan consolidation, you can look at student loan consolidation and student loan consolidation rates articles. For comparison, you can have a look at private school loan article.
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