In the current economy, pursuing an academic career is hindered by the finances needed to attain one. That’s why different kinds of student loans are widely used throughout the United States. One of the most popular is the Stafford Loan. They are affordable, low-interest, federally guaranteed loans from the federal government to give students the ability to pay for college and pursue a career. These loans are given in the name of the student or parent and a credit check isn’t required to get one. One good thing about these loans is that they are guaranteed by the federal government and have fixed interest rates that don’t usually change. These types of loans help students who want to go to colleges and older returning adults. A college degree is extremely helpful to teach each person how to control their personal or family budget or manage their investments much better.
A university degree is a valuable accomplishment that goes a long way to enable students who grow up and need to have more knowledge to properly maange their investments as they mature.
For those planning to get a Stafford loan, here are some guidelines you should know:
1. Qualifications for you to apply – for you to be eligible, you must register via a Free Application for Federal Student Aid (FAFSA). The student must be a permanent resident or qualify as an eligible non-citizen. The student should also have a social security number and must have a high school diploma. There are different types of cases discussed to be qualified for the FAFSA. You can complete this application either by applying online or submitting a written application via normal mail. When the process is done, FAFSA will determine the amount of the loan. Following that, the student will sign a legal document called a Master Promissory Note (MPN) which states the borrower will take responsibility for the repayment of the loan. This serves as another step in the student’s learning about managing their future finances.
2. Subsidized and Non-Subsidized Loans (Need or Non-Need Based) – Subsidized Loans are availed for families with less than $50,000 adjusted gross income. There are different case scenarios discussed by the government as guidance for families who need the Stafford loan assistance. Non-subsidized loans on the other hand can be available for any student regardless of family income and need. Interest is both fixed at 6% for subsidized and 6.8% for non-subsidized which are valuable factors in finance that students need to learn about.
3. Federal Direct Student Loan Program (FDSLP) and the Federal Family Education Loan Program (FFELP) – these are 2 different types of loans that are available, each loan has it’s own qualifications. FDSLP loans are provided by the government and are also called Direct Loans. The money is disseminated through the universities which will be passed directly to incoming college students or their parents as a loan. FFELP loans on the other hand are administered by banks, loan associations, and other private lenders. Although administered by private organizations or companies, this type of loan is still governed by federal rules and regulations. This loan experience serves to teach students more about managing their future financial obligations.
4. Repayment – Both programs on Stafford Loans offer different repayment options and different terms for repayment.
A Stafford Loan is the most widely used loan by students as it offers a low and fixed interest rate. It will surely provide students extra financial aid for colleges or universities. You can apply today, and once qualified, start classes at the university within a week. Is it time to obtain your new career goal?
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