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What is the best guide on how to apply for student loans for college?

I had no problem paying for college for the last two academic years. This is because my parents did not have any other child in university then. However, the situation has changed as my sister is joining college soon. I’m considering taking a loan to help me pay for the remaining years.

I have been searching for a suitable loan from the U.S. Department of Education loans website. I’m looking for a guide on how to apply for student loans such as the Stafford student loan.

Dana Keller

in Student Loans

1 answer

1 answer

Kaitlin Dean on March 26, 2018

Through the U.S. Department of Education loan website, you can be able to access two types of loans. These loans are given to eligible students from participating institutions.

These loans are commonly referred to as Direct Unsubsidized or Direct Subsidized Loans. Others refer to these as Direct Stafford Loans or Stafford student loans.

Highlights of Direct Subsidized Loans:

  1. Direct Subsidized Loans are given to undergraduates with the aim of helping them pay for college. The students must demonstrate financial requirement/ need.
  2. Your institution of education is responsible for setting the amount that you can apply for. This amount should not surpass your financial need.
  3. The interest on this loan is paid by the U.S. Department of Education. Instances for this to come into effect:
      • You should be in school for at least half of the duration,
      • Your interest is paid to you for six months immediately after graduating. This is the grace period.
      • Your interest is also paid when you defer your repayment.

Highlights of Direct Unsubsidized Loans

  1. These loans are available to both graduate and undergraduate students. Financial need is not a requirement for these loans.
  2. Your education institution comes up with the amount you can apply for by factoring your attendance costs and other financial assistance that you get.
  3. You are solely accountable for paying the interests on the loan at all time.
  4. Should you decide not to repay the interest while schooling and during grace and forbearance sessions, the interest on your loan will accumulate and get added to the principal loan.

Stafford loans: How to apply for a student loan?

Finish and submit the Free Application for Federal Student Aid (FAFSA). Information from your FAFSA is used by your institution to come up with the amount of student loan you should get.

Note that these loans are part of your financial aid.

Go to My Federal Student Aid to access information on financial aid and federal loans that you have received. This will also provide contact details for your loan servicer.

You can be able to cancel in whole or in part before the money is released. This can be done at any time by notifying your school on it.

On the other hand, in case your loan has already been disbursed, you can terminate your loan in whole or in part within a particular duration.

Kyle Mckinney2 years ago

The answer provided by this writer is very informative. Given the fact that you would like to apply for a Stafford student loan, I would like to give you some advice on how you can budget your loan to ensure efficiency.

Importance of budgeting:

Helps you realize your financial and academic goals.

Jotting down your goals is a sure step in the making of a master plan that will eventually turn to reality. It helps you to anticipate emergency expenses. Setting goals on the other hand, simplifies the decision making.

Budgeting will help you keep track of your progress towards achieving your set goals.

Budgeting ensures that you stay away from debt and improves your credit.

By sticking to a budget, you spend less than what you earn. This is important in reducing your credit card defaults.  

Managing your student loan will prepare you for loan repayment in the future.  

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