|
Federal Stafford Loans The Federal Stafford Loan is a low-interest student loan offered to both undergraduate and graduate students alike. Borrower Benefits AHELA offers the following borrower benefits on Stafford Loans:
When applying for a Stafford Loan, students must complete the Free Application for Federal Student Aid (FAFSA), be enrolled at least half-time, be a U.S. citizen or permanent resident and may not be in default on Federal education loan. Interest Rate Undergraduate Stafford loans have a 6.00% fixed interest rate for all loans first disbursed after July 1st, 2008. Graduate Stafford loans have a 6.80% fixed interest rate for all loans disbursed after July 1st, 2008. Grace Period Stafford loans allow you to receive a six-month grace period which begins the date you graduate or drop below half-time. During these six months you may begin repayment but are not required to do so. Subsidized vs Unsubsidized Stafford Loans There are 2 different types of Stafford loans. Which type you qualify for will be determined by your FAFSA. Subsidized Federal Stafford Loans - the federal government pays the interest while you are in-school, grace, and/or in deferment. Unsubsidized Federal Stafford Loans - you, the borrower, are responsible to pay the interest but can postpone payment while they are in-school, grace and/or deferment. Interest accrues during these periods and is capitalized (added to the principle balance) upon entering repayment. Disbursements Once you have completed your application, your financial aid office will determine your scheduled loan disbursements for the academic year. AHELA will disburse your check to the school on the dates requested. The school will then advise you that the check has been received and the process for picking up the check or having the check deposited directly into your bank account or school account. Paper Applications If you are unable to complete your loan application electronically, you may download a paper application to complete and mail. |
