What Are Federal Stafford Loans?

Stafford loans are offered to the graduate and undergraduate students. Those students who have attended the college for half time are eligible to apply for Stafford loans. Stafford loans are funded by US federal government and provide a great opportunity to the US nationals to finance their educational cost. These Stafford loan are available on fixed interest rate.

Stafford loans are available on very low interest rate as it is funded by US federal government. Stafford loan for undergraduate students are available on 5.6% interest rate. There are two types of Stafford loan, subsidized and unsubsidized. Government pays the interest rate for the students that come under the subsidized loan.

Who Can Apply For Federal Stafford Loans?

A foreigner student is not eligible for the Stafford loans but those US national which are enrolled or studying in some other country college or institute can apply for Stafford loans and even can take private loans to fulfill their need.

A US student can apply for Stafford loan by filling out the Free Application for Federal Student Aid (FAFSA) form. FAFSA will review your application in collaboration with your school or college. They analyze student’s results. After taking necessary information FAFSA will send you an “Award Letter” to the concerning student saying about you loan approval. After this you can apply for the Federal Stafford loan. A student can apply for loan by submitting there application at www.FafsaOnline.com.