Getting a Stafford Loan
Undergraduate and graduate students are eligible for Stafford Loans at low interest rates with significantly flexible repayment programs. This loan is a government guaranteed loan that requires no collateral. Before you can apply for a Stafford you must complete a Free Application for Federal Student Aid (FAFSA) form. It is easier and faster to complete this form online here: http://www.fafsa.ed.gov. After you submit this form, you will receive a Student Aid Report (SAR) and, if you are eligible to receive a Stafford Loan, you will receive an award letter from the school you will attend.
If you wish to take advantage of this loan, you can then complete the Stafford Loan form which is the FAFSA.
Print and complete this form and send it in (be sure you keep a copy for your own records). You must update your FAFSA and Stafford loan forms every year to remain eligible for consideration and awards.
After the lender receives your completed application and promissory note, the loan funding will be made available to your school to apply to your account. If there is any money remaining at the end of the term, you will receive a refund check. You should use this check to pay back some of the loan, so that you do not incur interest on that amount.
After you receive your degree, it is wise to consolidate any Stafford or other loans you have so you can lower your monthly payments and lock in a low, fixed interest rate for the remainder of your payout period. This will help you manage your finances during the first few years after you graduate, and you will find it easier to pay off your student loans in a timely fashion. The Federal Consolidation plan allows you to consolidate Stafford, PLUS and direct student loans.