Federal Undergraduate Student Loans - What You Need to Know
College can be a big investment, and no matter where you are in your college education, you may find a large gap between your desire to pursue a career and the money you have available to actually pay for it.
Did you know that two thirds of all college students resort to undergraduate student loans in order to finish their degree? The federal Stafford loans are one of the simplest and more common loans that you can apply for as an undergraduate because of their low, fixed interest rates.
Subsidized Stafford loans are based solely on the financial needs of the undergraduate student, while unsubsidized Stafford loans are not based on need.
According to StaffordLoan.
com, a student must meet these requisites to be apply for a subsidized Stafford loan.
He must be a U.
S.
Citizen or permanent resident.
He must have completed high school or taken his GED test and be enrolled at least half-time in an accredited institution.
He will need to have a FAFSA pin number, and he must not be behind in his payments on any existing federal loans.
Besides these personal requirements, the school where he is attending must acknowledge that the student has a financial need.
There are several benefits of the subsidized Stafford loan.
You don't start repaying the loan until six months after you finish school, and there is no interest incurred while you are still in school.
They are low interest loans and you don't have to have a credit check to be accepted.
There are three important differences between the subsidized and unsubsidized Stafford loans.
The unsubsidized loans are not based on need.
The moment the loan is approved and the money is dispersed to your school, the loan company begins to charge interest, although, you aren't obligated to make any payments until six months after you finish your education.
The fixed interest rates are slightly higher for this type of loan.
One advantage of the unsubsidized Stafford loan is that you can apply for $2,000 more than the total available from the subsidized Stafford loan.
Once you receive this loan, it would be wise to make monthly payments to pay off the interest you are being charged each month while you are still in school.
If you don't make any payments, the interest is added together and applied to the total amount of the loan.
Interest is then accrued on the total of the loan and interest combined when you begin to repay the loan.
When you run into financial problems while you are in college, do everything you can to get free money.
Once you have exhausted all of the resources for free money, apply for a subsidized or unsubsidized federal Stafford loan.
The type of undergraduate student loans you choose will depend mostly on your financial condition.
Did you know that two thirds of all college students resort to undergraduate student loans in order to finish their degree? The federal Stafford loans are one of the simplest and more common loans that you can apply for as an undergraduate because of their low, fixed interest rates.
Subsidized Stafford loans are based solely on the financial needs of the undergraduate student, while unsubsidized Stafford loans are not based on need.
According to StaffordLoan.
com, a student must meet these requisites to be apply for a subsidized Stafford loan.
He must be a U.
S.
Citizen or permanent resident.
He must have completed high school or taken his GED test and be enrolled at least half-time in an accredited institution.
He will need to have a FAFSA pin number, and he must not be behind in his payments on any existing federal loans.
Besides these personal requirements, the school where he is attending must acknowledge that the student has a financial need.
There are several benefits of the subsidized Stafford loan.
You don't start repaying the loan until six months after you finish school, and there is no interest incurred while you are still in school.
They are low interest loans and you don't have to have a credit check to be accepted.
There are three important differences between the subsidized and unsubsidized Stafford loans.
The unsubsidized loans are not based on need.
The moment the loan is approved and the money is dispersed to your school, the loan company begins to charge interest, although, you aren't obligated to make any payments until six months after you finish your education.
The fixed interest rates are slightly higher for this type of loan.
One advantage of the unsubsidized Stafford loan is that you can apply for $2,000 more than the total available from the subsidized Stafford loan.
Once you receive this loan, it would be wise to make monthly payments to pay off the interest you are being charged each month while you are still in school.
If you don't make any payments, the interest is added together and applied to the total amount of the loan.
Interest is then accrued on the total of the loan and interest combined when you begin to repay the loan.
When you run into financial problems while you are in college, do everything you can to get free money.
Once you have exhausted all of the resources for free money, apply for a subsidized or unsubsidized federal Stafford loan.
The type of undergraduate student loans you choose will depend mostly on your financial condition.
