Stafford Loan Application
The Stafford Loan is a low interest federal student loan that helps students and pay for the cost of college. All Stafford loans are through the Department of Education, which means there are no private banks involved. The Stafford Loan consisted on two different types of federal loans, which include the Subsidized Stafford Loan and the Unsubsidized Stafford Loan, which are for undergraduate students attending an approved Title IV post secondary institution.
In order to qualify for a subsidized/unsubsidized Stafford student loan, students/parents must complete the FAFSA, which is the Free Application for Federal Student Aid. This federal loan application determines how much your family is able to contribute to your college education based on current income and total family assets and cost of attendance. It also takes into account if other dependent family members are attending a post-secondary institution. The Stafford Loan application, also known as the FAFSA, is the only form necessary to apply for a subsidized/unsubsidized Stafford direct loan.
Stafford Loan Applications can be completed and submitted online or through regular mail. Students that submit their application online will receive instant confirmation that their application was received and can follow the status of their application. Students that submit online also have the option of viewing their financial aid package online and other features that will assist them when determining how to pay for college. Many students are submitting their Stafford Loan application online, since there are many more benefits available to the student when compared to sending the application through regular mail.
Once you’ve completed and submitted the FAFSA, the Department of Education will send the SAR (Student Aid Report) indicating if you are eligible for federal financial aid. Within the SAR, you will see an EFC score. The expected family contribution or EFC determines how much your family should be able to contribute to your post-secondary education. The lower the score, the higher the chances are that you will receive a Stafford Loan. If you are eligible for federal financial aid, your college’s financial aid office will send an award letter indicating the dollar amount you qualify to receive.
Obtaining a Stafford Loan is a great way to pay for your post-secondary education. All Stafford Loan recipients are able to take advantage of low interest rates because the federal government subsidized a portion of the accrued interest. This subsidy benefits all Stafford Loan borrowers, since it lowers the cost of the overall loan. The Stafford Loan also offers favorable repayment terms that can assist students having a different time repaying their loan. When searching for financial aid, make sure to apply and complete the Stafford loan application.