Federal Studend Loans

Since it is expensive to study in U.S universities the federal government has introduced the Federal Stafford loan. The Federal Stafford Loan is one of the most popular education loans for undergraduates and graduate students. 

Being a U.S. citizen is the first criterion for a federal Stafford loan. Then you need to submit your FAFSA. This is very important as without this you cannot get a Stafford loan. Do remember to include your school’s FAFSA code, so that the results are directly sent to financial aid’s office in your school. A SAR that is student aid report will be mailed to you in a fortnight after you file for FAFSA. The SAR should be submitted to the school or college you wish to apply for. These can be sent to more than one school. The type of financial aid you wish to apply must be mentioned in you’re application. There is more to applying for a federal Stafford loan. A promissory note has to be filled and all this can be done online. Ensure you keep a copy of your loan application, promissory note and your FAFSA code to chase up later on. When applying for a federal Stafford loan you should not have applied or availed any other loan. If you have then you need to have paid off.

On receiving the promissory note, funds will be ready for disbursements and sent to concerned schools. Schools set disbursement dates generally in July and absorb your Federal Stafford Loan amount directly to tuition cost. Any money left over will be sent to you as a refund check.

The main advantage with a Federal Stafford loan is you start returning only after you finish education. Moreover if the amount sanctioned is not enough you can also apply for a private student loan. It is enough if you are a part time student to be eligible for a federal Stafford loan. You must attend a school that participates in the Federal Family Education Loan Program. These loans are repayable for a period of 10 years and are at very low interest rates.