Stafford Loans

Stafford Loans 

The majority of people who want to get a college education need to get financial aid in order to be able to pay for that education. Most students (and their parents) simply don't have the cash that's necessary to pay the high cost of college out of pocket. As a result, they turn towards any scholarship, loan or other money that they can get their hands on. As a general rule, they try to get the best college loans possible in order to have the least amount of money owed back after they graduate from college. For this reason, a large percentage of college students are familiar with Stafford loans.

Stafford loans are one type of government loan designed specifically to provide students with the money needed for college. Because of this purpose, you must be enrolled in college in order to receive a Stafford loan. You also must meet certain other requirements before you'll get approval for these college loans. The benefit is worth the hassle because Stafford loans have better interest rates and repayment terms than any private college loans.

Stafford loans are preferred as tuition assistance over private loans because of the benefits they offer specifically to students. In addition to the lower interest rate, Stafford loans do not require immediate pay back. If you were to use a credit card to fund your education, you would have to start making payments immediately. With a Stafford loan, your payments are deferred (without penalty) until six months after you graduate. This makes Stafford loans much easier on students, particularly those who aren't able to work while going to school.

In addition to deferred payments, your interest may be deferred. This means no interest accrues on the Stafford loan while you're in school. This is only true for one type of Stafford loan, called the subsidized Stafford loan. Should you get an unsubsidized Stafford loan, you may be able to defer the interest payments but the interest itself will accrue while you are in school. Whether you get a subsidized or unsubsidized school loan will depend on your financial aid status.

In order to apply for a Stafford loan, a student must first complete the FAFSA, which determines your level of financial aid. This will determine how much money you are eligible to receive and whether that tuition loan will be subsidized. You can then apply for the loan through either the Department of Education or through a private lender of your choice. The benefit of choosing a private lender is that you can compare the different terms and benefits that they offer; in some cases, this may mean getting a lower interest rate than the one being offered by the government. Stafford loans aren't the only financial aid that you're likely to get but it's a good place to start when looking to fund your college education.

Secret 3 Things Your Financial Aid Advisor Isn’t Telling You


A student loan is designed to assist students pay for tertiary level education, such as university tuition, books and living expenses. It differs from other types of loans because the interest rate maybe substantially lower and the schedule for repayment are usually deferred until the student has successfully completed their education....

Student Loan Consolidation – The way out of your student loan debt hell

Consolidation Rates

Decades ago, college education was quite inexpensive and it was a certain ticket for the middle class. But today all of this has changed and has become so expensive that people are not being able to afford their higher education. Living in a state that dons a double digit unemployment rate, both the students and their parents are failing to make...

Re-consolidating Student Loans – Advantages

Consolidation Rates

Upon graduation from college, students begin to think of how they will accomplish the goal of paying off their student loans. Many financial institutions are now making available to students a loan consolidation service. This service has been offered to students, as well as recent graduates, to help ease the financial impact that these loans can...

Current Student Loan Consolidation Rates

Consolidation Rates

Consolidation of student loans is a process where different types of loans taken by a student, are bound together and a student is required to file a single monthly payment to repay all loans, rather than making each slice. It is important to understand here that there are many types of costs for achieving different types of courses....

Defer Your Student Loan – Advance Your Degree and Put Off Payments

Consolidation Rates

Great news! You might not be aware that if you decide to go further within your career field and get a more advanced degree you will have the option of deferring your current student loans. This in no way allows you to get out debt free but it does give you longer repayment terms and longer that you can put off paying those payments. You can find...