There are several different types of loans that students can apply for to help cover the costs of their studies and course equipment and their living expenses while they study. Some of the most common are Stafford loans, Perkins loans, and PLUS loans.
The first step in obtaining financial aid for an undergraduate or graduate program of study is to complete and submit a form called the FAFSA. This stands for Free Application for Federal Student Aid and is administered and evaluated by the Office of Federal Student Aid, which is part of the Department of Higher Education. Each year, around 14 million students submit these forms, and they are used to calculate how much aid can be given in terms of grants and loans to an individual, compared to how much they and their families are expected to contribute.
Getting the right type of student loan for you can make all the difference in terms of whether you can take the course and how financially hard it will be for you and/or your parents, so it’s vitally important: if you need help, to understand your options exist and how they work, and to complete and submit your FAFSA as quickly as possible.
One of the popular types of loans that you can try to obtain is called a Stafford loan. This type of loan is available to people in full-time and part-time courses, and can be used to finance graduate or postgraduate students, as long as they are enrolled at least half-time in an eligible school.
To qualify, students must be eligible to study in the US, either as citizens or nationals, or as foreign nationals who can provide evidence of permanent residency status.
You don’t need to pass a credit check to receive a Stafford loan, which can be very helpful, especially for young students who haven’t yet had a chance to improve their credit rating, or for students with a bad credit history.
There is a fee when you get the loan, but in some cases it may be covered by your lender.
The interest rate is currently set at 6.8% APR. if you can demonstrate significant financial need, the interest can sometimes be subsidized. You also have the option of not paying while you’re in college, and in this case, the interest can be capitalized, which means it’s added to the back of the loan. This makes Stafford loans quite flexible depending on your individual circumstances.
Independent students (ie, those preparing for college without financial aid or support from their parents) and graduate students are generally offered the highest dollar amounts in Stafford loans. The maximum for all Stafford loans is $18,500, but depending on your situation, your own maximum (which you are not yet guaranteed to get) may be much lower. The lowest maximum amount is currently $2,625.
