Question

stafford loans

Answer 1

The financial requirement is used in conjunction with the details you apply on the Free Application for Student Aid (FAFSA). A subventionated loan is given. If you qualify for a subsidized Stafford loan, you will not be charged at least half time interest while you are in school for a grace period of up to six months after at least half time, or for certain defined periods of deferment. Term of these periods is compensated (subsidized) by the Federal Government.

A non-subsidized loan is not issued on a necessity basis. However, you do have to use FAFSA. You will be paying interest on non-subsidized loans from the moment the loan is taken out until it is paid in full. However, during your time at school and during a period of grace or deferment, you can defer payment for interest. However, it is capitalized if you allow interest to increase (accumulate). This means that interest is applied to your loan's principal sum, and extra interest is dependent on this higher amount.

Stafford loans generally have lower interest rates than those for private loans; most student loans do not have a credit check and the reimbursement begins until after a student leaves college or drops less than half-time.