How to Get a Stafford Loan

The first step in applying for federal Stafford loans is to fill out the FAFSA with your intended school. The FAFSA will determine your financial eligibility. Other eligibility requirements are as follows:

• Applicants must be citizens of the US
• Certain non-citizens are considered eligible
• Enrolled at least part time in a college degree program
• Graduated high school, or have GED
• No default student loans.

Once you have filled out the FAFSA, the student financial aid department of your school will tell you how much aid you are qualified for. At that time, you will sign a promissory note giving your promise to pay back the amount according to the terms of your loan. If you are getting a FFEL loan, you will choose your lender from the participating lenders in the area. Repayment terms will vary based on the type of loan you get.

Benefits of Stafford Loans

There are several benefits to getting a Stafford loan for your college information. First, there is no credit check required in order to receive a Stafford loan. This makes it a great option for those with credit problems. Also, the loan does not require anything put down as collateral. Even students with no credit history can qualify for Stafford loans.

Stafford loan payments go to your school first, but any remaining money is given directly to the student in the form of a check. This gives the student the ability to pay for other education necessities, such as books, even if they do not have money to do so. Students can have the school hold their extra funds for the next enrollment period if they wish to do so instead of having the money come to them in a check.

Another benefit of the federal direct student loans is that the loan does not require a co-signer. It is also a very affordable option for funding college education. There is no guarantee fee associated with federal Stafford loans. The main fee other than interest charged for federal Stafford loans is the collections fee if you should not pay back your loan on time. Many students choose federal Stafford loans, because they are so affordable.