The Federal Family Loan Education Program, created for giving students financial aid, was instituted by the US Congress in the year of 1965. Stafford loans are only a part of this program. Initially these loans assisted students only in a real financial need. Today mast if student loans sponsored by the Government and Stafford loans. During some time Stafford loans’ conditions changed and it led to 2 forms of loans: subsidized and unsubsidized.
Those who get subsidized Stafford Loans enjoy several advantages. From the issue date to the first day of repayment the Federal Government is responsible to pay any interest. While you are enrolled in classes, you don’t have to pay.
You start repaying the loaned money in six months after graduation. But if you want to start repaying sooner, it’s all up to you. Usually such loans are given to those who are in need as the interest is subsidized. Before a student qualifies to get a subsidized Stafford loan, his family’s income would be considered by aid officials. Applicants complete the FAFSA form. This application has details about your income. EFC number is calculated from declared income and is given to each student.
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