Question 7: What is the interest rate on a Stafford loan?
HHLoans.comAnswer: The interest rate on the Stafford loan is a variable ratThe interest rate on new Stafford loans is a fixed rate that is set by the federal government. For the 2006-2007 school year, the interest rate is 6.80%.
Related QuestionsWhat is the interest rate on the Stafford Loan?
Yeshiva University | Student AidThe interest rate is variable (adjusted annually) but will never exceed 8.25 percent. You'll be notified any time the variable rate changes.
Related QuestionsWhat is the Stafford Loan interest rate?
Stafford Loan FAQ - Student Loan NetworkRemember - a Graduate Stafford Loan is a variable rate loan - it changes every July 1, regardless of when you took the loan out. The only way to lock in a rate is to consolidate your Graduate Stafford Loans.
Related QuestionsQuestion 2: How do I apply for a Stafford loan?
HHLoans.comAnswer: To apply for the Stafford loan, contact the student financial aid office at the school you are or will be attending. The financial aid office will provide you with specific instructions and a Stafford Master Promissory Note. The financial aid office will certify the loan amount you are eligible for based on information that you provide on your FAFSA (Free Application for Federal Student Aid).
Related QuestionsQuestion 7: What is the interest rate?
HHLoans.comAnswer: Students may choose either a fixed interest rate or a variable interest rate. The fixed interest rate is a simple rate, calculated on the principal amount borrowed. The variable interest rate is re-set annually on July 1st and will never be higher than 4 points above the rate at which the loan is made. THECB does not capitalize the interest at any time during the life of the loan.
Related QuestionsHow do I apply for a Stafford Loan?
Stafford Loan FAQ of common questions - StaffordLoan.comYou first must complete the Free Application for Federal Financial Student Aid (FAFSA) or Renewal FAFSA (for returning students). After the FAFSA is processed, your school will review the results and inform you of your loan eligibility by sending you an award letter. Once your award letter is received, you should apply for the Stafford Loan, as well as look at other federal student loans or private student loans.
Related QuestionsAre there Stafford Loan deadlines?
Stafford Loan FAQ of common questions - StaffordLoan.comThere is no single set deadline for completing a Stafford Loan application however your school may have specific deadlines for completing the application. You will need to contact your school's financial aid office to obtain deadlines for your specific institution.
Related QuestionsHow much can I borrow under a Stafford Loan?
Stafford Loan FAQ of common questions - StaffordLoan.comThe amount you can borrow is based on your grade level and your status as a student. Independent students may be eligible to borrow more because they are paying for college without assistance from their family. It is important to note that even if a student is financing their education on their own, dependency status is still determined by the school. Based on your award letter, you may not always qualify for the maximum Stafford Loan amount.
Related QuestionsWhat can I use a Stafford Loan for?
Stafford Loan FAQ of common questions - StaffordLoan.comStafford Loans can be used towards the total cost of education - tuition, room and board, books and other education-related expenses.
Related QuestionsWhen will I receive my Federal Stafford Loan funds?
Loyola University Chicago- FAQsStudent loan proceeds are sent, in multiple disbursements, by a financial institution to Loyola. New Federal Stafford Loan borrowers are subject to a 30-day delayed delivery period before their first disbursement can occur. If the Federal Stafford Loan funds are sent by Electronic Funds Transfer (EFT), the proceeds are applied as a credit to your university account with the Office of the Bursar.
Related QuestionsNELA : Northwest Education Loan AssociationThese loans are for students borrowing on their own behalf. There are two types of Stafford Loans: subsidized and unsubsidized. Subsidized means the government makes the interest payment on your loan while you are in school, grace period or deferment. Unsubsidized means that you are always responsible for interest payments, even while you are in school.Related Questions
FAQs: Consolidate Student Loans, Apply for PLUS, Get Staffor...Stafford loans are flexible, low rate federal loans that offer several benefits not available through other alternate financing sources, such as high APR private loans or home equity lines of credit.Related Questions
Will my future Stafford and/or PLUS loans have the same rate as my Consolidation loan?
Consolidation FAQsThe interest rate on any future Stafford and PLUS loan is determined by the federal government. Based on current law, the interest rates on these loans would not be the same as that on your new Consolidation loan.
Related QuestionsQuestion 3: What are the differences between a subsidized and an unsubsidized Stafford loan?
HHLoans.comAnswer: Both are federal loans. A subsidized loan is based on financial need. The federal government pays the interest on this loan while a student is in school, during a grace period, and during authorized periods of deferment. The borrower of an unsubsidized Stafford loan is responsible for all interest that accrues, including the period that he or she is enrolled in school.
Related QuestionsWhat is the difference between a Subsidized Stafford Loan and an Unsubsidized Stafford Loan?
UMBC: Financial AidThe student is not required to make any payments of principle or interest on a Subsidized Stafford Loan while the student is in school. However the interest on an Unsubsidized Stafford Loan is the student’s responsibility from the time the loan funds are sent to the university until it is paid in full. The student can opt to allow the interest to accumulate, however it will be added to the principal amount of the loan and increase the amount to be repaid.
Related QuestionsWhat are the Stafford Loan cancellation policies?
Stafford Loan FAQ of common questions - StaffordLoan.comYou must be enrolled at least half-time (based on your school’s definition of full and half-time status) to qualify for Stafford Loans.
Related QuestionsWhen do I receive the Stafford Loan funds?
Stafford Loan FAQ of common questions - StaffordLoan.comYour lender will disburse your Stafford Loan funds directly to your school in two installments – usually in the fall and winter semesters. Your loan money will be used to pay your tuition and fees. If you have funds left over, your school will credit your account or pay you directly based on your school’s policy.
Related QuestionsWill I pay any fees for the Stafford Loan?
Stafford Loan FAQ of common questions - StaffordLoan.comMany guarantors no longer charge a guarantee fee for education loans. But if they do, this fee could be up to 1% of the loan amount. Additionally, your lender may charge an origination fee up to 3% of the loan amount. Guarantee and origination fees, if charged, are deducted from the loan funds before they are sent to the school. There are never early payment penalties for federal student loans. That is another great benefit of the Stafford Loan.
Related QuestionsWhat are the repayment options for a Stafford Loan?
Stafford Loan FAQ of common questions - StaffordLoan.comThe standard repayment term for this loan is 10 years. You may be able to extend repayment by deferring or consolidating your loans. The Standard Repayment Plan requires you to pay a fixed amount each month based on your principle and interest but will be no less than $50 or the interest that has accrued. The Graduated Repayment Plan allows you to make lower payments at the beginning of repayment then, over time, your payments begin to increase.
Related QuestionsTroy University - Financial Aid - Frequently Asked QuestionsA Stafford loan is variable interest rate loan made to students based on financial need. There are two kinds of Stafford Loans: Subsidized and Unsubsidized. With a Subsidized Stafford loan, you are not responsible for the interest charged on the loan as long as you are in school as an at least half-time student. Instead, the government pays the interest for you while you are in school.Related Questions
How long after I complete my Stafford Loan promissory note before I can receive the money?
WSU - FAQsWhen Great Lakes receives the promissory note, the money is disbursed to Wright State within 72 hours. The bursar then uses the money received for any balance due. The remainder of money will be sent in a reimbursement check or direct deposited within 72 hours.
Related QuestionsDoes each lending organization have the same interest rate for the Stafford Loan Program?
Stafford Loans FAQYes. The federal government sets the interest rates on July 1st of each year. These rates are valid for 12 months. The interest rate is reset every July 1st. The interest rate is capped at 8.25%.
Related QuestionsWhat type of loan is a Stafford Loan?
Chela | Federal Loans | Stafford | FAQsStafford loans are the most popular federal loans available to help students pay for college. They are the first source of aid for many students who meet federal eligibility requirements, and are backed by the government. These loans have low interest rates and do not require credit checks or collateral. They also provide a variety of deferment options and extended repayment terms for borrowers who need more time to repay their loans.
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