Attending college after graduation is a dream all high school students ought to have. A college education opens many new doors. Nevertheless, high school graduates often do not have the money to even pay college tuition. Do not allow this roadblock to stop you! Many options are available to you! One of these options is to apply for a federal Stafford loan.



The Department of Education gives out Stafford Student Loans. They are the most common of all federal student loans. Stafford loans are available to graduates and undergraduates and being in terrible financial need isn�t necessarily required.

In order to be eligible, to apply you must be a United States citizen who is planning on attending a United States college or university, you must be in school at least half-time, and you must turn in a FAFSA.

The Stafford student loan has a fixed interest rate. It only changes once a year. The rate of 6.8% was chosen for this year.

There are two different kinds of Federal Stafford loans: unsubsidized and subsidized.

Unsubsidized Stafford Loans are available to nearly any student despite their financial need. The moment you start college the interest rates will begin. Nevertheless, you may defer payment of interest until after graduation if you so choose.

Subsidized Stafford Loans are only given based on financial need. You must turn in a FAFSA application in order to prove that you need financial aid. This has to be done every year. You can find this application at FAFSA.com.

If you are given a subsidized Stafford loan, the Federal government pays your interest while you are in school. Interest does not accrue and payments do not start until six months after you graduate. Again, you must be in school at least half-time. After graduation, you must begin making payments on your own.

For those who have subsidized loans, undergraduates can take out loans between $2500 and $5500 per year. Graduate Students may borrow up to $8500 a year. The money is sent to your college or university. Students who have taken out unsubsidized loans are permitted to borrow more.

These loans are available through the government or through private lenders The government has a fixed interest rate for Stafford loans so private lenders are usually better since they must convince you to borrow from them instead of the government.

NOTE: Use of this article requires links to be intact.