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Stafford Student Loan

Janice Said:

Can I use my Stafford Sub and Unsub student loan to help pay for rent?

We Answered:

You can if you were given an overage amount that can be used toward living expenses. Your school will get the money first then send you any amount over tuition and fees. My advice, put it in a savings if you can and use it for anything that could arise. You never know if you will have enough in aid for the next school year and it doesnt hurt to keep what you have for that.

Scott Said:

I need help with choosing a student loan (stafford loan). I have no clue what to look for when trying to find?

We Answered:

Stafford loans are government loans. You must meet a certain need level in order to be granted the stafford loan. There are two types, subsidized (where they pay the interest for you) and unsubsidized (where you pay the interest). You must fill out the FAFSA to get either of them at http://www.fafsa.ed.gov/ and then submit it to your school of choice. They'll evaluate your need based off of your results and the costs of the school, and then determine your eligibility based off of that.

For more information on stafford loans, go here: http://www.staffordloan.com/

Bonnie Said:

What is the difference between a Stafford student loan and a Private student loan?

We Answered:

Stafford students loans are federal loans while private student loans are not.

There are two types of Stafford loans: Direct and FFELP. Direct loans are when the money comes directly from the US Department of Education. FFELP loans on the other hand come from private lenders, but are federally guaranteed by the government (meaning that if you default on the loan, the lender is still guaranteed to be repaid by the federal government, therefore transferring your debt to the US Department of Education Debt Collections).

The hugest difference in federal Stafford loans and private loans is the interest rate and repayment terms. Stafford loans have an interest rate of 6.8% fixed over the life of the loan. Furthermore, if you have financial need and qualify for a subsidized loan, that interest will not accrue until you actually enter repayment (6 months after graduating or dropping to less than halftime enrollment). Also, because the loans are federally guaranteed to the lender, there is no credit check involved (therefore no co-signer required either). For many students wishing to take out private loans, a co-signer will be required because students either have limited credit/employment history and/or bad credit.

On private loans the interest rate is going to vary depending on the credit worthiness of the borrower/co-signer. Most applicants are highly likely to get an interest rate way above the 6.8% on federal Stafford loans (I've even seen them as high as 20%). Because of this, private loans should only be utilized if ABSOLUTELY NECESSARY! They are very costly and, if not paid according to the terms chosen by the lender, can ruin your credit.

Always use all the federal and state aid you can before resorting to private sources. The terms and conditions on federal loans are much more merciful than you are going to get from any private lender.

Mae Said:

First Hawaiian Bank Stafford student loan?

We Answered:

Bank America has the best rates. That's what a friend of mine here at the University where I work has told me. She is a Financial Aid officer at the University and they can't recommend one to a student because of certain laws but she did tell me in confidence. Check it out for yourself

Tommy Said:

can i receive a federal stafford student loan if i was denied for fafsa aid?

We Answered:

universities.atwebpages.com - try this site. It has info about different US scholarships for college students and their grades requirements.

Maxine Said:

Can you apply for the federal stafford student loan before you register for your classes?

We Answered:

Your school's financial aid will assist you with the loans. However, you can speed up the process by going to www.fafsa.ed.gov and filling out the FAFSA application. you'll need your 2006 tax info to fill it out.

Cory Said:

can you use a stafford student loan to pay for rent at an apartment or a room rental?

We Answered:

It's not the ideal situation but room and board is part of your educational costs if you are a student especially if you are full time.

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