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Stafford Loans Overview

The funding programs of the US Department of Education provide people with the opportunity to apply for a Stafford Loan. These loans enjoy high popularity among people due to their not so strict qualification rules.

Qualifying for a Stafford Loan

The students who apply for Stafford Loans can be either part-time or full-time enrolled (you are required to be enrolled at least half time), undergraduate or graduate (your institution should also meet eligibility requirements), and have US citizenship, permanent residency, or eligible non-citizen status.

Stafford Loan Application

In order to apply for a Stafford loan you should go through the FAFSA process. After this you should decide from whom to take the loan. For recommendations you can refer to your Financial Aid office. Your Financial Aid office will be also able to give you information on the maximum loan amount you can apply and qualify for.

Stafford Loans Advantages

Stafford loans provide their holders with various benefits:

  • One of them is the lack of credit check during the application process.
  • If you decide to pay back the money before the due date you will not incur any fees.
  • Stafford loans also provide highly flexible repayment schedules.
  • You can also do consolidation.
  • If you work as a teacher and meet several other requirements you may be forgiven the loan.
  • In case you demonstrate that you are in financial need you can get subsidies for the interest you pay on the loan.
  • Interest can be also capitalized while you are still at school.

Stafford Loan Disadvantages

Despite the many positive sides Stafford loans have, they are not deprived of their disadvantages. One of them is that you are subject to a fee. However, this fee may be paid by the lender. Also, have in mind that a fixed APR of 6.8% is charged on the loans that have been obtained after July 2006.

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