Who Can Apply for a Stafford Loan
Paying for post-secondary education is an expensive endeavor. Many students utilize a combination of personal funds, scholarships and academic loans to pay for annual tuition bills. One of the most popular forms of student loans is known as a Stafford Loan. These loans are funded by the federal government and dispensed through the Department of Education. Before considering this form of student loan, it is vitally important to understood who is eligible for receiving such funding.
Submitting the FAFSA
Students attending colleges and universities in the United States are encouraged to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA. This application examines the financial situation of the student and his or her family. Using the information submitted with the application, schools determine the student’s level of financial need. Not only is this a necessary step for obtaining a Stafford Loan, but the results of the FAFSA can also determine eligibility for additional assistance. Continue reading “Who Can Apply for a Stafford Loan” »
What is a Stafford Loan
A Stafford loan is a loan that is supported by the federal government to help students pay for college. Stafford loans may be obtained by both undergraduate and graduate students in order to reduce the overall costs of an education by providing loan assistance. These loans can be combined with other forms of financial aid such as other types of federal loans, private loans, grants, or scholarships. The loans can also be used in conjunction with work-study programs. A combination of these forms of financial aid can be used to pay for all or part of a college education.
Stafford loans are unique in that they may be granted to students regardless of their credit rating. This allows many students who are just starting out and do not have adequate credit history to obtain the money they need to get an education. Moreover, it may help families who have poor credit to obtain the financial assistance that is necessary in order for a family member to go to college. Another benefit of a Stafford loan is that no payments are required while the student is actively enrolled in school. As long as the student stays in school at least half-time, which typically means six credit hours at least two semesters out of each calendar year, payments are not required. Payments typically begin six months after graduation or after the student stops attending classes. Continue reading “What is a Stafford Loan” »
Student Loan Consolidation
By consolidating student loans, a person can significantly lower their monthly payments, and they can obtain outstanding terms and conditions for their new loan.
Choosing A Lender
When preparing to consolidate student loans, a customer must choose a company that offers relatively large loans, and a company that specializes in student loan consolidation can help the customer through the entire process.
A Lower Interest Rate
One of the benefits of consolidating student loans is the ability to obtain a significantly lower interest rate. The interest rate that a person can obtain depends on a number of factors, such as the customer’s credit score, the amounts of any other debts and the customer’s debt-to-credit ratio.
The Loan Duration
A customer can choose a new loan that has a long duration or a loan with a relatively short duration.
A loan with a long duration will offer the customer much lower monthly payments because the payments will be spread out over time; however, a loan that has a short duration may provide a slightly lower interest rate. Continue reading “Student Loan Consolidation” »
Student Loan Forgiveness
Debt from student loans can become overwhelming. There are some options available that allow you to significantly reduce or even eliminate the debt that you owe for your education. Student loan debt can be forgiven, which means that you won’t need to repay loans, if you meet some specific criteria.
Do You Qualify for a Student Loan Forgiveness Program?
Student loan forgiveness is available to some people based on your career. Volunteers for the Red Cross or Peace Corps, for instance, may be eligible for loan forgiveness provided that you volunteer for a specific amount of time. Volunteers typically have seventy percent or less of their total loan amount dismissed after volunteering. Teachers and those entering other public service careers can also be eligible for loan forgiveness if payments have been made for at least ten years. Teachers should be working in a low income area to qualify for loan reductions through the National Defense Education Act. Continue reading “Student Loan Forgiveness” »
Student Aid for Low Income Families
Earning a degree can get expensive, and if you qualify, you may be able to receive financial aid to cover a large portion
of the cost. Student aid is available from the US Department of Education and from state organizations in the form of federal grants, state grants, and even loans. If you qualify as a low income applicant, it is important to know all of your options before you apply for admissions to a post-secondary school. Read on to learn what type of aid is available, what the requirements are, and how to apply for aid before you enroll in your classes.
What is Federal Financial Aid?
Federal financial aid is available to families who qualify. This aid can be used to cover tuition, books, college-related expenses and housing expenses if the student lives away from home. Federal aid comes in several different forms which can include: Pell grants, scholarships, work-study programs, and tuition fee waivers. When you are applying for financial aid to cover all college-related expenses, you will be asked to complete a Federal Student Aid application. While your income and your parents’ income are major factors considered by the Student Aid Commission, your college experience and other demographic factors can also be considered to qualify you for academic achievement grants. To be awarded aid, you must complete a FASFA application and select the school code of the school you plan on attending. Continue reading “Student Aid for Low Income Families” »