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