Stafford Student Loans Help High School Students Become College Students
By Elise Fisher
Enrolling in college after graduation is a dream all high school students ought to have. A college education opens many new doors. The problem is, oftentimes high school graduates don�t have the necessary funds to pay for college. Do not give up your dream because of lack of finances! Many options are available to you! One of these options is to apply for a federal Stafford loan.
Stafford Student Loans are given out by the Department of Education. They are the most common of all federal student loans. Federal Stafford loans are given to both graduates and undergraduates and you don�t necessarily have to be in great financial need.
To be eligible you must be a US citizen who will be attending a US college or university, you must be attending school at least half-time, and you must submit a FAFSA (Free Application for Federal Student Aid).
The interest rates on the Stafford student loan are fixed. It only changes once a year. The current percentage rate is 6.8%.
You have two options when it comes to Stafford loans: unsubsidized and subsidized.
Unsubsidized Stafford Loans can be taken out by nearly any student regardless of their income. Even if his or her family makes $400,000 annually, they can still apply. The interest rates will begin as soon as you start college. However, you may defer payment of interest until after you graduate if you so choose.
Subsidized Stafford Loans are only given to those students who are in great 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.
Those who have subsidized Stafford loans do not have to pay interest while they are in school. The government will pay it for you. Interest does not accrue and payments don�t begin until 6 months after college graduation. Once you graduate, you will begin making payments yourself.
For students with subsidized loans, undergraduates are permitted to take out loans between $2500-$5500 per academic year. Graduate Students are permitted to borrow up to $8500 per year. The money is mailed straight to your college or university. Those who have unsubsidized loans are allowed to borrow more.
You can get these loans straight from the government or from private lenders. The government has a fixed interest rate for Stafford loans (6.8%) so private lenders are usually better because they must entice you to borrow from them instead of the government.
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About the author
Being a college student herself, Elise Fisher enjoys writing articles that help college students finance their higher education. To learn more about Stafford Student Loans and other federal loans, follow the link. Don't miss the Low Interest Student Loans page. from http://www.FreeArticlesAndContent.com
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