Most students need guidance when it comes to learning about financial aid. The first step in securing a Stafford Federal student loan is to file your FAFSA at FAFSAonline.com, as this electronic means will save students a lot of time. Three to four weeks later, the student will receive a copy of their Student Aid Report and about a week later the student needs to look for a financial aid award letter from the school to which he or she has applied. This letter will detail how much aid the student is eligible for, and the form of aid that he or she will get.
Armed with the award letter, in case the student has been approved a Stafford Loan, he or she can then apply for free and obtain a promissory note that has to be signed by the student and it will contain directions on how to file it. The Federal Stafford Loan is a low-interest federally guaranteed loan that students can avail of, and these federal student loans are either subsidized or unsubsidized.
The government pays the interest on subsidized loans at the time that the student is still in school and for a six month grace period after the student has left the school. The interest on an unsubsidized federal student loan begins to accrue from the date of disbursement, and the student may receive a subsidized loan as well as an unsubsidized loan during the same enrollment period.
Consolidating the Federal Student Loan Is Advisable
It is also possible for the student to take his or her federal student loan and consolidate it. Federal student loan consolidation is available and it provides all the required information necessary for enabling the student to take advantage of this repayment program. With federal student loan consolidations reaching unprecedented lows it has become advantageous to the student to receive federally guaranteed protection by using one of these programs.
A good federal student loan program is the Federal PLUS loan that is a smart financial strategy that parents of students find useful, because it helps the family meet college costs at rates of interest that are below those of the market, and are also supplemented with generous terms. With this federal student loan, one gets interest rates as low as 8.5 per cent, is able to borrow 100 percent of the college costs and it is available all year round.
The student is also eligible for federal loan consolidation, and the interest may be tax-deductible with the whole process being on an instant-approval basis. So, there is no need to procrastinate, and the student should not waste precious time, but act immediately and avail of such a federal student loan.