What is a Federal Stafford Subsidized Loan?
• The Federal Stafford Subsidized loan is a federally sponsored student loan available at schools participating in the FFELP. A bank, credit union, savings and loan association or in rare cases the school itself can make the loan. The school’s primary role is to certify your eligibility. • A guarantor, a state agency or non-profit corporation, insures the loan, which means you can make the loan just on your signature. The guarantor may charge a fee for this insurance. • This loan was created specifically for students after high school and has many benefits not ordinarily found in credit cards or other loan products. • You choose the lender. Keep in mind that this is the beginning of a long-term relationship. It is a good idea to use the same lender throughout your college career. Multiple lenders can cause increased monthly payments and complicate repayment. Go to top Do I qualify for a Federal Stafford Subsidized Loan? A Federal Stafford Subsidized loan is awarded on the basis of fina
Related Questions
- One of our students has received subsidized Stafford loans at two different schools for the same loan period. What is the obligation of the student and the school in this scenario?
- How are Federal Stafford Loan and Federal PLUS funds disbursed to the students and parents?
- What is a Federal Stafford Subsidized Loan?
