US Stafford Loans for Students Program

Program Description

Stafford loans are available to undergraduate and graduate students and come from two sources:

* Direct Stafford Loans are made by the U.S. Department of Education. You repay a Federal Direct Stafford Loan to the U.S. Department of Education.

* Federal Stafford loans are made through '(FFEL) Program Federal Family Education Loan. While FFEL funds come from private lenders such as banks and credit unions, are subsidized and supported by the SU Ministry of Education. You can pay for FFEL Stafford loan private lender that made the loan or his representative.

If you receive a Direct or FFEL Stafford Loan depends on which program your school participates. In both cases, the conditions of the loan (loan amount, interest rate and other benefits) are generally the same.

For both Direct and FFEL programs there are two types of Stafford loans:

subsidized loan is awarded on the basis of economic information is configured to send a free application for Federal Student Aid (FAFSA). If you are eligible for the subsidized Stafford loan will not be charged interest while you are in school at least half-time during a grace period of no more than six months after you are no longer enrolled at least "a half-time" basis , or in some specified period of deferment. The federal government pays (support) the interest during these periods.

An unsubsidized loan is not awarded on the basis of need. But you should always ask for FAFSA. For unsubsidized loans, you pay interest when the loan is disbursed until it is paid in full. You can choose to defer interest payments while you're at school and during any grace period or deferment. But if you allow interest to accrue (accumulation) in these periods will be capitalized. This means that interest will be added to the principal of your loan and additional interest will be based on that higher amount.

General Program Requirements

To qualify for this program, you must be enrolled in post-secondary degree to attain post-secondary education or a certificate. There are other requirements. For more information, read the Student Handbook online http://studentaid.ed.gov/students/publications/student_guide/index.html.

Loan Terms

Maximum Amount: up to $ 20,500 per year (depending on grade level, driving the independent student, your status as a university student or graduate, and obtain the total cost of attendance).

Interest rate: The interest rate is variable (adjusted annually on July 1), but does not exceed 8.25 percent. You will be notified of any time variable rate changes. For interest rates on Stafford loans currently go to http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp?tab=funding.

Maximum Loan Term: 30 years, depending on the amount borrowed and the payment plan chosen. There are a number of payment plans offered by the Direct and FFEL programs. Read your student loan payment online http://www.studentaid.ed.gov/students/publications/repaying_loans/index.html for more information on the return.

Payment frequency: monthly or quarterly. After you graduate, leave school or drop below half time enrollment, you have a grace period of six months to start paying.

Prepayment penalties: None

Taxes: You pay the fee more than four percent of the loan, deducted proportionately each loan. Therefore, the deduction, you get a bit 'less the amount you are borrowing.

Your next step

The following information will guide the next steps to apply for this benefit.

Application Process

To apply for a FFEL or Direct Stafford loan must complete the Free Application for Federal Student Aid (FAFSA). You can apply online using FAFSA on the Web at http://www.fafsa.ed.gov (fastest, easiest) or you can get a paper FAFSA from your high school, a library, postsecondary education, or by calling the Federal Republic of Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243). TTY users can call for the hearing impaired 1-847-688-2567.