QandAs: Loans

What is a Federal Stafford Loan?

Answer:
A Federal Stafford Loan is available to undergraduates

and graduate students. College is expensive, and quite a few students apply for some type of financial aid. Undergraduate and graduates students have several options available to them. Federal aid is very common because the government guarantees the funds and loan approvals are quick.

To qualify for a Federal Stafford Loan students must meet simple requirements. The first requirement is to complete an online FAFSA form, which determines financial aid eligibility. To meet the criteria for a Federal Stafford Loan, applicants must be a U.S citizen, permanent resident, or qualified citizen. Additionally, applicants must be register at least half time.

There are two types of Federal Stafford Loans: subsidized and unsubsidized. Students qualifying for a subsidized loan are not charged interest prior to repayment, nor do they pay interest during any deferment periods. On the other hand, students awarded an unsubsidized loan must pay interest from the time the loan disburses to the time of repayment. Grade status determines the amount a student can borrow on Stafford Loans. For example, a freshman qualifies for $3,500, whereas a junior qualifies for $5,500. Federal Stafford Loans offer tremendous benefits such as no payments until six months after graduation and fixed low rates.


	more Q&A sessions like this
	What is a Federal Supplemental Loan for Students? If I have Bad Credit, Can I Get a Student Loan without a Co-Signer? What is the FAFSA? Is Financial Aid the same thing as a Student Loan? What is a Student Loan? What is a Private Student Loan? I Have Bad Credit, Can I Get a Student Loan? Are there tax benefits to Student Loans? When am I required to pay back a Student Loan? What are the Benefits to Student Loan Consolidation? What is a Work-Study Program? How much should I save for my Child's College Education? What is a Scholarship?