what is stafford loan
3416c504792dcd3699d0e55bc22843e5
Stafford Loan A Stafford Loan is a student loan offered to eligible students enrolled in accredited American institutions of higher education to help finance their education.
4b47cd8c4149113d3ce16c6d1dbdab15
- When do I have to start payments on my student loan? Stafford loan borrowers begin repayment after a 6-month grace period. Students enter their grace period after dropping below at least half-time enrollment status from the school they are attending. On the subsidized Stafford loans the government pays all interest during the grace period.
6badaad905931fe3cc5b366fd7078a1c
Frequently Asked Questions A Federal Perkins Loan is a low-interest (5%) loan for undergraduate and graduate students with financial need. Your school is your lender. The loan is made with government funds, and your school contributes a share. You must repay this loan to your school. What are Stafford loans? Direct and FFELP Stafford loans are either subsidized or unsubsidized.
70a03c9a465abaf4799dca0231857584
Types of Student Loans Stafford Loans are more common than Perkins Loans, the other type of federal student loans. Money for these loans comes directly from the federal government in a program called the Federal Direct Student Loan Program (FDSLP). There are two types of Stafford Loans: subsidized and unsubsidized. The type helps determine your interest rate and maximum loan amount.
19c5c35c72972c97db36b9dda8771422
Federal Direct Stafford Loans Subsidized Stafford loans are awarded on the basis of need. The interest that accrues on this loan while a student is in school is subsidized (or paid) by the federal government. Typically, the government will subsidize the interest rate until the loan enters into repayment (to include the grace period of the loan). Due to legislative changes, subsidized Stafford loans made July 1, 2012 through July 1, 2014 will begin to accrue interest during the grace period.
bbf2b45e42a29fa7e5a6dc6bb43238b7
Subsidized vs. Unsubsidized Stafford Loans Subsidized vs. Unsubsidized Stafford Loans. 1  You are allowed to defer any payments until after you graduate. 2  If you do not demonstrate financial need for the Subsidized Stafford/Direct Loan, you may still borrow the same amounts under the Unsubsidized Stafford/Direct Loan. 3  Offers a maximum of $23,000 to students upon graduation.
4c5bfa044b5dec8108ceed4d47f963ca
- To receive a subsidized Stafford loan, students must meet specified criteria for low family income as determined by the FAFSA (Free Application for Federal Student Aid). The unsubsidized loan has no income requirements. In addition, only undergraduates are eligible for subsidized loans.
d7f48b45072f2adacf9f661ef469ec3e
- Direct Stafford Loan. Direct Stafford Loans are student loans that must be repaid and are available to both undergraduate and graduate students. First-year undergraduates are eligible for loans up to $5,500. Amounts increase for subsequent years of study, with higher amounts for graduate students.
ac4d759705e38d301b91a61dddfda92d
Enrollment Services A student is eligible to be considered for the Federal Direct Unsubsidized Stafford Loan if they: 1  have a valid EFC on file in the Financial Aid Office. 2  are enrolled in an eligible program on at least a half-time basis. 3  have been awarded all subsidized loan eligibility.  are making satisfactory academic progress.
3b20f5ed92178b417be37ffc932ac286
Answers to Your Questions on Student Loan Interest As of July 1, 2013, the interest rate on new subsidized Stafford Loans rose to 6.8% from the previous rate of 3.4%. Our Administration is actively working with Congress to bring rates back down for new loans.
cfe8b4a3160f431b7b8d05da253fc476
Federal Stafford Loans Pell Grant Eligibility > Federal Student Loans > Federal Stafford Loans. Federal Stafford Loans used to be offered as either part of the FFEL, of Federal Family Education Loan Program, or as part of the William D. Ford Federal Direct Loan Program.
b7eaf2ab402c8be646f1d577739480d1
Stafford Loan In 1988, Congress renamed the Federal Guaranteed Student Loan program the Robert T. Stafford Student Loan program, in honor of U.S. Senator Robert Stafford, a Republican from Vermont, for his work on higher education.
07bcc992c30bcf5e2f4667888c61526e
Student Loan Info for Parents Unsubsidized Stafford Loans begin accruing interest from the date the loan is disbursed to the school. Although repayment of Stafford Loans is deferred until the student graduates from school you do still have an option of making interest only payments while in school.
2fd137231e02c496b7f1218be164a32c
Direct Unsubsidized Loans Summary: Direct Unsubsidized Loans (sometimes called Unsubsidized Stafford Loans) are federal student loans borrowed through the Direct Loans program that offer undergraduate and graduate students a low, fixed interest rate and flexible repayment terms. Demonstrated financial need is not required to qualify.
f0d0a3500c005e592dd0ca7270538f1a
Direct Stafford Loans Direct Stafford Loans are available to undergraduate and graduate students through the federal government. These loans have a fixed interest rate. There are two categories of Direct Stafford Loans: subsidized and unsubsidized.
cdf4ea5930e3824f1613890ec6d6e3cd
Stafford Loan Stafford Loans are available both as subsidized and unsubsidized loans. Subsidized loans are offered to students based on demonstrated financial need. (See Expected Family Contribution.) The interest on subsidized loans is paid by the federal government while the student is in school and during authorized deferment. For unsubsidized Stafford Loans, students are responsible for all of the interest that accrues while the student is enrolled in school. The interest may be deferred throughout enrollment. Unpaid interest that is deferred until after graduation is capitalized (added to the loan principal).
b554ffb0f98b6e32fe1935faf8988cc0
- The Federal Stafford Loan has a fixed interest rate of 6.8% and the Federal PLUS loan has a fixed rate of 7.9%. This loan calculator also assumes that the loan will be repaid in equal monthly installments through standard loan amortization (i.e., standard or extended loan repayment).
b630d898f93a857e430f377427a47a99
What is a 'Stafford Loan ' Stafford Loan. Share. DEFINITION of 'Stafford Loan '. A type of federal, fixed-rate student loan that was available to college and university undergraduate and graduate students attending college at least half-time.
f56a90b9614f2ba8d9f681851ae83409
Financing Study Abroad â Speaking the Truth in Simple English Myth: Loans I expect to take out will cover all my costs. Reality: Federal loans have limits on how much a student can borrow per year. For example, the maximum Stafford loan a student can borrow is $5,500. This amount may fall well short of the cost of your study abroad program costs. Even private bank loans may restrict the amount you are able to borrow, depending on your credit history and other factors (such as whether or not you have a cosigner).
49d2f21042e2fc4285b367a18998bb88
What is the difference between a Perkins and a Stafford loan? Stafford Loans are Title IV Federal debt. They are the most common student financial aid loans-they are GSL's (Guaranteed Student Loans) that are backed up by a federal guarantor.
340a47533c78300f07fbf04ca12afb8e
Direct Loans The second type of Stafford Loan, the unsubsidized student loan, is not based on financial eligibility or needs. Unsubsidized loans have higher borrowing limits that are calculated on a case-by-case basis at the school’s discretion.
9306c97be08b763553d9677e70c19483
- Part of what makes student loans so complex is the sheer number of options. And if you don’t know which one you’re choosing, you could end up with the wrong one for your financial situation. The Direct Loan, also known as a Federal Stafford Loan, is one of the most common federal student loans. If you’re evaluating your loan options at the moment, it helps to know a little more about the Federal Stafford Loan, since it comes in different versions to suit the needs of different borrowers. Understanding the Federal Stafford Loan.
f653ebca2521b3b88a3591ce6809183c
Federal Direct Loans The Federal Stafford Loan is a long-term, low-interest loan available to all students. 1  Complete the Free Application for Federal Student Aid (FAFSA).  Complete the Master Promissory Note (MPN). If you have borrowed previously at USD you do not need a new MPN.
57d68f72e6970de33570e18aa5806a71
Loan Interest Rates Interest rates on Federal Stafford Loans are fixed. The current interest rates for new Federal Stafford Loans in 2015-2016 are 4.29% for undergraduate students and 5.84% for graduate and professional students. Interest rates are the same for subsidized and unsubsidized Federal Stafford Loans.
6875f33218eb24a30ed6a2ff305c7c7b
- The Federal Stafford Loan has a fixed interest rate of 6.8% and the Federal PLUS loan has a fixed rate of 7.9%. This loan calculator also assumes that the loan will be repaid in equal monthly installments through standard loan amortization (i.e., standard or extended loan repayment). The results will not be accurate for some of the alternate repayment plans, such as graduated repayment and income contingent repayment.
eef1e7c6d9f84b15121e8e50c9639d70
8 things to know about federal student loans As the largest of the federal loan options, the Stafford loan program comes in two varieties -- subsidized loans, for low-income students, and unsubsidized loans, which are available to everyone. The difference is that with subsidized loans, interest isn't charged while the student is in school.