The Stafford Loan
March 5th, 2009. Published under Credit. No Comments.
Are you starting college within the next year? If you are, you are probably frantically looking for ways to pay for it. You should be applying to every college scholarship you can find, working as many hours at your part time job as you can to save up some cash, and talking to your parents about any possible college fund they have and if there is any money they can give you towards college. College costs have only gone up in recent years, much faster than the cost of almost everything else.
A lucky few are born into wealth. They are fortunate enough to have their parents foot the bill for their entire college education. Other people are really smart and get full scholarships to college.
For the rest of us, we have to come up with the money on our own. Even after attending a community college or going to a state school, getting all the scholarships we can, and saving up all the money we can, some of us will still come up short. Those who do have to take out loans.
As bad as it sounds to have to take out a loan, if you can’t pay, you have to do it. As much as you hate to do it, it’s just what you need to do. Most college students will have to take out a student loan.
Government student loans are the first place you should look. They will always have the lowest interest rate compared to private loans, and especially compared to credit cards. The Stafford Loan should always be your first choice.
The Stafford Loan can be used for any 2 or 4 year college, university, or trade school. It must be used for tuition and you can borrow up to $4,000 each year. You can choose either a subsidized or unsubsidized loan.
The subsidized loan is created for those in extreme financial need. The government will pay the interest for you during your attendance in college and for until six months after you graduate. You have to qualify for financial need to get this loan.
The Stafford loan is the first place you should look if you are considering a loan. You will have to pay it back, so make you have have plans to repay when you graduate.