Stafford Loans for College

Stafford Loans are federal student loans made available to college and university students to supplement personal and family resources, scholarships, grants, and work-study. Nearly all students are eligible to receive Stafford loans regardless of credit. Stafford loans may be subsidized by the U.S. Government or unsubsidized depending on the student's need.In most cases it makes more sense to apply for an unsubsidized Stafford loan than it does to get one from a bank or other source.

Stafford Loan Information: Benefits

Low fixed interest rate - Stafford loan rates for the 2011-2012 school year are as low as 3.40%

Increased borrowing limits - up to $20,500 per year depending on degree status and years in school

No payments while enrolled in school

Acceptance not based on credit

1. Even though the interest rate is more for an unsubsidized loan than a subsidized, it is still a decent rate, and will not change during the life of the loan.
2. Almost everyone qualifies as long as you are at least a half-time student.
3. There are no credit checks.
4. You will have to pay interest on the loan while you are in school, but you won’t be required to begin paying it back until you graduate.
5. When it comes time to begin paying it back, there are many different options including basing your payment on your income, or starting your payment with a low amount and increasing it as your income increases.
6. You won’t be penalized if you choose to pay your loan back early.
7. If you have several Stafford loans, you can apply to have them consolidated, resulting in a lower monthly payment.
8. If you lose your job or are off work due to illness, you can apply for a temporary deferment of your loan repayments.
9. Going in to the military or employment in certain fields may entitle you to a reduction in the amount you have to repay.

Stafford Loan Information: Eligibility

You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen accepted for enrollment or attending a school that participates in the Federal Family Education Loan Program. Additionally:

You must have submitted a FAFSA to be eligible for a Stafford loan

For subsidized Stafford, you must have financial need as determined by your school

You must be enrolled or plan to enroll at least half time.

 For more information on Stafford loans and information about alternative student loans, visit this site: http://www.staffordloan.com/.