Re: Stafford Loans -- College Aid Resource Centre-Financial Aid Forum

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Subject: Re: Stafford Loans

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Date Posted: 01:08:48 07/08/03 Tue
In reply to: John 's message, "Stafford Loans" on 00:25:49 07/08/03 Tue

>Who gets a Stafford loan and what exactly is it?

Staffords are student loans that are basic to the concept of "self help" and appear as part of most aid packages. The Stafford is an entitlement program. No credit check is necessary. Any student who has applied through the FAFSA form, is attending school at least half time, and has at least one full academic year of study remaining in an eligible program, has the right to borrow up to certain limits.

Interest is adjusted yearly, but never exceeds 8.25%. For the year beginning July 1, 2002, the interest rate for Stafford Loans is 3.46% for loans that are in in-school, grace, or deferment status and 4.06% for loans that are in repayment or forbearance status. Repayment need not begin until six months after the student completes school or drops below half-time enrollment. There is a choice of repayment plans, with the standard plan being over a period of ten years. On the standard plan, a borrower would pay $184 per month to repay a subsidized loan of $15,000 with terms of 8.25% (maximum) interest repaid over 10 years.

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Replies:

Subject	Author	Date
Re: Stafford Loans	Douglas H. Cole	14:56:43 04/05/05 Tue