One of the most important loan facilities administered to the students is Federal Loans. Filling out the FAFSA (Free Application for Federal Student Aid)loan form is typically how most current and future students apply for student loans.
There are several loans included under the federal loan facility, of which one of the important types is the Stafford Loanfacility. The thing which makes this loan facility a much sought after one is that it carries a low interest. The Stafford loan basically covers for most of your education expences including, tuition, books, boarding and other related expences. The best part about using the Stafford loan is that there is no deadline for loan application and a student can use it for any eligible school accepting it.
Since, this loan facility is included under the federal loans, the loan amount that the student is eligible to receive, is decided by FAFSA. Also, a student is required to apply for the loan every year since it does not get renewed automatically. There are certain pre-requisites you need to satisfy before you can qualify for the Stafford loan:
- The student must complete the FAFSA loan form.
- Student should be enrolled into a school for at least half a term.
- Next, the student must complete the Master Promissory Note, which stands as a promissory note for your loan.
The Stafford Loans are of two basic types:
While in subsidized loans, the government subsidizes the loan interest, in the unsubsidized loans, the interest is charged on loan from repayment of loan.