Stafford Student Loans are given out by the Department of Education.
They are the most common of all federal student loans. Federal
Stafford loans are given to undergraduate and graduate students
and you dont necessarily have to be in great financial need.
In order to be eligible, you must be a United States citizen
who will be attending a United States college or university, you
have to be attending school no less than half-time, and you must
turn in a FAFSA (Free Application for Federal Student Aid).
The interest rates on the Stafford student loan are fixed. It
only changes once a year. Right now its at 6.8%.
Subsidized and Unsubsidized are the two types of Stafford student
loans.
Unsubsidized Stafford Loans can be taken out by almost any student
regardless of their income. The interest rates will begin as soon
as you start college. Nevertheless, you may defer payment of interest
until after graduation.
Subsidized Stafford Loans are only given to those students who
are in great financial need. You must turn in a FAFSA application
in order to prove that you need financial aid. This has to be
done annually. You can find this application at FAFSA.com.
Those who have subsidized Stafford loans do not have to pay interest
while they are in school. The government will pay it for you.
Interest doesnt accrue and payments dont begin until 6 months
after you graduate. After graduation, you will begin making payments
yourself.
January Beginning on January 1, file your FAFSA online. By filing
online, your FAFSA will be processed much faster than paper FAFSA
applications. Many scholarships also begin accepting applications
in January, so start surfing!
February Be on the lookout for a "Student Aid Report"
(SAR). This report is a confirmation of the data you submitted
on the FAFSA. If you need to make changes, follow the instructions
or contact the school's financial aid office. You can also call
1-800-4-FED-AID for assistance.
Check the schools listed on the "School Section" of
the SAR to ensure the correct schools were recorded on your application.
You can always submit it to additional schools at a later date.
March Many schools begin distributing awards in March. You should
receive a package of information from the school's financial aid
office that details the financial aid programs and dollar amounts
of your financial aid award.
Follow the instructions and be sure to meet any deadlines for
accepting your financial aid award.
Remember, financial aid rarely meets all the costs of tuition
and fees; to make up any gaps between federal and institutional
financial aid, you may need a private student loan.
April Remember to file your IRS 1040. Even though it's not strictly
financial aid-related, any tax penalties or taxes owed can wreak
havoc on financial aid the following year, so be sure to stay
on the good side of the IRS by filing a tax return.
May Students who are graduating should immediately file for student
loan consolidation. Students still enrolled in school for another
year or more should continue searching for aid, scholarships,
and grants throughout the summertime.
