Stafford loan is a federal loan. In fact, it is a fixed-rate federal loan offered to college, graduates, undergraduates, and other students. However, it is now under the William D. Ford Federal Direct Loan Program as direct loans.
Stafford Loan before It was recognized under the U.S Department of Education
Before July 1, 2010, Many Federal student loans were grouped by the Federal Family Education Loan Program. But, all new federal student loans move to the U.S Department of Education through the William D. Ford Federal Direct Loan Program (Federal Direct Loans). Now, Stafford loan is a present direct loan we know.
How a Stafford Loan Works
Federal loans are for student loans. Thus, Stafford loans can come in two ways such as subsidized guaranteed. Like, Stafford loan or direct subsidized loan and unsubsidized guaranteed.
Furthermore, direct subsidized loans and direct unsubsidized will be offered to you based on how much you need. Therefore, a Direct Subsidized loan is only offered to undergraduates that need money. Whereas undergraduate and graduate students can take out unsubsidized loans without serious financial need. The factor put in place checks the max amount that may be subsidized even though things may vary and cause the need for a larger amount. Thus, the max amount is $3, 500 per year for freshmen, $4,500 per year for second-year students, and $5,500 per year or Fifth-year students.
Am sure that the whole article is a red bullet for what your need to know about Stafford loans. Nevertheless, they are true details of direct loans more often the transition from the Federal Family Education Loan Program to the U.S Department of Education.
Stafford loans stand guaranteed low-cost for students of the college, at least half-time.
To qualify for Federal loans such as direct loans, you must first be a school that supports federal loans. Secondly, you will need to complete the FAFSA.
The number one benefit of Stafford loans down to other federal loans is that it has lower interest rates, unlike private loans. In spite of this, there is still no credit check for most federal loans. You can also count on federal loans because payback begins after a student Leaves College either by graduation or drop out.