| The main components of the federal Stafford | | | | loan limits and also the subsidized / unsubsidized |
| student loan are the two types of financing | | | | financing. Below you can find the current regulations |
| programs for post-secondary students. | | | | that can influence your loan: |
| Stafford loans are under the administration of the US | | | | Pros: |
| Department of Education and comprise the William D. | | | | - The credit checks are not required because the |
| Ford Federal Direct Loan (Direct Loan) Program and | | | | Federal government guarantees for the loan. |
| the Federal Family Education Loan (FFEL) Program. | | | | - The fixed rate interest rates are the lower interest |
| Only students can apply for a Stafford loan by filling | | | | rates on the market |
| an FAFSA (Free Application for Federal Student Aid) | | | | - The repayment plans offer very flexible terms. This |
| and send it to whatever school they want. Once the | | | | means that you will set the payment plan that fits |
| form is reviewed, the school decides the financial | | | | you best and also you can consolidate your other |
| eligibility. | | | | loans into a single and more affordable one. |
| For direct student loans, the federal government is | | | | - During student enrollment the repayment is |
| the lender but the FFEL program allows you to | | | | deferred. |
| choose the lender using a list offered by the school | | | | Cons: |
| or a qualified lender. | | | | - Sometimes the loan limits are insufficient especially |
| Under this program, the federal government will | | | | considering today's post-secondary education costs. |
| guarantee for the loan. | | | | - You have to submit a FAFSA (Free Application for |
| The loan can be subsidized (the federal government | | | | Federal Student Aid). |
| pays the accrued interest while you're in school) or | | | | - You have to ask for Stafford loans every year and |
| unsubsidized (the accrued interest will be included in | | | | in time this leads to multiple payments and loans that |
| your loan balance). | | | | will affect your post-graduation life. |
| If a student brings all the correct documents, then he | | | | - You will only direct the use of the funds because |
| she can benefit from a subsidized Stafford loan. | | | | they are processed and collected only by the school |
| Each year in school influences the federal Stafford | | | | for your lab fees, books, tuition, etc. |