All About Stafford Loans for Undergraduate Education
This article will provide you with all the information you need to take the benefit of Stafford loan. All this information will educate you about the Federal Stafford Loan Program.
Stafford Loan Program is federal student loans program formulated exclusively for college and university students. This program assists them by supplementing their personal and family resources and other grants and scholarships they are receiving. As per the eligibility criteria, almost all the students pursuing either a full time or half time course in a recognized institution of U.S. are eligible to obtain its benefits. Stafford loan may either be subsidized by the U.S. Government or unsubsidized depending on the requirement of the student.
Stafford loans are widely preferred by the students in the U.S. as opposed to other regular education debt programs owing to their comparatively low interest rates. The interest rate comes close to around 4% for the current academic year and as a departure from other traditional loan programs, will remain constant till the debt is completely repaid. The Stafford Loan Program allows the student to borrow up to $20,500 per year for its education, which depends upon the status of the degree, its duration, academic record of the student and the student’s financial background. The main advantage of Stafford loan over other regular loan programs is that, it does not take into account the past credit record of the borrower.
The eligibility criterion for Stafford Loan dictates that the student must be either a U.S. national or citizen, or a permanent U.S. resident who is eligible and accepted for the enrollment in a recognized educational institution based in the U.S. that participates in the Federal Family Education loan program. Moreover, in order to apply for this loan program, the student would be required to submit an FAFSA with the proof of the financial need as determined by the educational institution from where he is pursuing the course. Also the student must be officially enrolled to either a full time or a half time course in that institution.