Stafford (Direct) Loans
the most popular used loans for education
The Stafford student loan is a federal government "direct" loan made by the government to student who qualify for student loans.
The Stafford loan is a guaranteed fixed rate student loan that covers all or part of your education-related expenses as certified by the institution. The loan is available for both undergraduate and graduate level programs.
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financial aid types
About Stafford (Direct) Loans
There are two types of Stafford (Direct) Loans:
- Subsidized Loan:
For undergraduate students only. No interest will be charged while you are in school at least half-time and during deferment periods. Eligible to those student who demonstrate need. - Unsubsidized Loan:
For undergraduate, graduate and professional degree students. Interest is charged on the loan during all periods that loan is outstanding.
How do you apply for this loan?
- Complete the FAFSA form - see financial aid steps
- Get with your college's financial aid office. They will have the information you need to complete
- Complete the Master Promissory Note (MPN) for this loan (see your college financial office)
- Complete entrance counseling - this is a mandatory information session which takes place before you receive any student loan (see your college financial office).
financial aid types
Loan Amounts
- Varies by student grade level. The higher your credit earned, the higher amount of loan amounts: see loan chart
- repayment on the amount borrowed begins 180 days after graduation or separation from school.
- deferment plans are available
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loan advantages/disadvantages ... |
financial aid types
Loan Eligibility
- display a need for financial aid (except for unsubsidized Stafford and PLUS loans).
- complete high school and have been awarded a high school diploma
or a General Education Development (GED) Certificate.
- pass a college entrance exam approved by the U.S. Department of Education, and/or meet other standards your state may establish.
- be enrolled or accepted for enrollment as a regular student working
at least half-time toward a degree or certificate in an
eligible program.
- be a U.S. citizen or eligible non-citizen.
- have a valid Social Security number
- make satisfactory academic progress.
financial aid types
Interest Rates and Fees
- Current Rate: view rates
- your interest rate is fixed for the life of the loan
- interest on eligible amounts may be subsidized and unsubsidized
- no credit check or co-borrower needed
- loan fee that is a percentage of the borrowed amount will be charged when you take out your loan - so the amount you actually receive will be less than the amount you have to repay. This is the origination fee for the loan
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Helpful Tools
Some helpful tools for tracking n' managing aid decisions:
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