|
|
Stafford Student Loan
|
If you're a
new student or returning to college you may need a Stafford
student loan to continue to fund your education. In fact,
applying for a Stafford student loan makes good financial sense!
Federally guaranteed student loans
are perfect for students in almost any financial situation. |
|
A Stafford student loan is one of the most affordable ways for a
student to finance their college and higher education. Stafford
loan rates are generally lower than other forms of funding and
your payments are postponed until you leave school or drop below
half-time enrollment; which makes the Stafford student loan the
a popular source of college loan funding. |
 |
Stafford Loans are government secured student loans that are
available to the undergraduate and graduate students at
extremely low interest rates. More advantages of the Stafford
student Loan includes collateral free application and no credit
checks.
Since there's no credit check or need for a co-signer, the
Stafford student loan is given directly to students in their own
name. |
|
There are two types of Stafford student loans which are awarded
both with and without
consideration of the student's financial needs.
Subsidized
Stafford student Loan
The subsidized Stafford student loan is need-based student loan
and interest does not accrue on the loan while you are attending
college or enrolled in school at least half-time. Interest does
not accrue on the Stafford student loan during grace and
authorized deferment periods either. Students will become
responsible for the interest when they leave school and start
paying back their loan.
Unsubsidized Stafford Student Loan
The Unsubsidized Stafford student loan, is not a need-based
loan, and students are responsible for all of the interest that
accrues on the loan, including in school durations.
If you do not qualify for the subsidized Stafford student Loan,
or require additional financing than the subsidized Stafford
student loan program can offer, you may qualify and apply for an
unsubsidized Stafford student loan. You can apply to the
Unsubsidized Stafford student loan regardless of your family's
income. This is commonly referred to as the self-help financing
option.
With the exception of the in-school interest provisions, both
subsidized and unsubsidized Stafford loans have very similar
terms.
Stafford Student
Loan Eligibility Requirements
To be eligible for the Stafford Student Loan you must:
-
be a U.S.
citizen or national, a U.S. permanent resident, or eligible
non-citizen.
-
submit a Free
Application for Federal Student Aid (FAFSA).
-
be accepted for
enrollment or attend a school that participates in the
Federal Family Education Loan Program.
-
be enrolled or
plan to enroll at least half time.
-
have financial
need as determined by your school for subsidized Stafford
loans.
-
not be in
default on any education loan or owe a refund on an
education grant.
|
Interest Rates
The interest rate on Stafford
student loans first disbursed commencing July 1,
2006 is fixed at 6.8%.
The interest rate on Stafford student loans first
disbursed on or after July 1, 1998 but before June
30, 2006 is variable and subject to change on July 1
of each following calendar year but will never
exceed 8.25%.
The rate is based on: The 91-day T-bill rate + 1.70%
during in-school, grace, and deferment periods. |
|
Date Disbursed |
Type |
In-School Rate |
Repayment Rate |
|
7/2006-6/2012 |
Stafford |
6.80% |
6.80% |
|
PLUS |
8.50% |
8.50% |
|
7/1998-6/2006 |
Stafford |
3.61% |
4.21% |
|
PLUS |
5.01% |
5.01% |
|
7/1995-6/1998 |
Stafford |
4.41% |
5.00% |
|
PLUS |
5.67% |
5.67% |
|
7/1994-6/1995 |
Stafford |
5.01% |
5.01% |
|
PLUS |
5.67% |
5.67% |
|
10/1992-6/1994 |
Stafford |
5.01% |
5.01% |
|
PLUS |
5.67% |
5.67% |
|
|
The current interest rate on
Stafford loans first disbursed on or after July 1,
1998 but before June 30, 2006 is 7.22% in repayment
and 6.62% during in-school, grace, and deferment
periods.
In compliance with the College
Cost Reduction and Access Act of 2007 the fixed
interest rates on newly originated subsidized
Stafford student loans for undergraduate students
was cut to 6.0% (2008-09), 5.6% (2009-10), 4.5%
(2010-11) and 3.4% (2011-12), then returning to 6.8%
in the years 2012-13.
The interest rate cuts are apply to undergraduate
students, and does NOT include graduate students.
These Stafford student loans interest rate cuts only
apply to subsidized Stafford loans, not unsubsidized
Stafford loans. Unsubsidized Stafford loans remain
fixed rate of 6.8%.
|
|
Date
Disbursed |
Type |
In-School
Rate |
Repayment
Rate |
Cap |
|
7/1/2006-6/30/2012 |
Stafford |
Fixed Rate of
6.8% |
Fixed Rate of
6.8% |
NA |
|
PLUS |
Fixed Rate of
8.5% |
Fixed Rate of
8.5% |
NA |
|
7/1/1998-6/30/2006 |
Stafford |
91-day T-bill
+ 1.7% |
91-day T-bill
+ 2.3% |
8.25% |
|
PLUS |
91-day T-bill
+ 3.1% |
91-day T-bill
+ 3.1% |
9.0% |
|
7/1/1995-6/30/1998 |
Stafford |
91-day T-bill
+ 2.5% |
91-day T-bill
+ 3.1% |
8.25% |
|
PLUS |
CMT + 3.1% |
CMT + 3.1% |
9.0% |
|
7/1/1994-6/30/1995 |
Stafford |
91-day T-bill
+ 3.1% |
91-day T-bill
+ 3.1% |
8.25% |
|
PLUS |
CMT + 3.1% |
CMT + 3.1% |
9.0% |
|
10/1/1992-6/30/1994 |
Stafford |
91-day T-bill
+ 3.1% |
91-day T-bill
+ 3.1% |
9.0% |
|
PLUS |
CMT + 3.1% |
CMT + 3.1% |
10.0% |
|
|
Federal Stafford Loan Benefit Summary
- Low,
fixed interest rate of just 6.8% for undergraduate
students
-
Repayment deferment while you’re in school or
enrolled half time
-
Interest deferment while attending school
- Tax
breaks & deductions and flexible repayment terms
-
Eligible for federal loan consolidation
- No
co-signers required
- No
collateral or credit checks required
|
|
|
