A federal Stafford Loan is one of the most affordable ways for students to pay for their college education. Stafford loan rates are lower than other forms of consumer financing, and repayment is postponed until the student is out of college. However, according to NextStudent, the Phoenix-based premier education funding company, many people do not realize that there is a Federal Stafford Loan Program that is NOT need-based. Anyone from Donald Trump’s daughter to Donald Duck’s son (if he wasn’t a cartoon character that is) can apply and qualify for the unsubsidized Federal Stafford Loan Program.
Two Types of Federal Stafford Loans
NextStudent offers both unsubsidized and subsidized Federal Stafford Loan Programs. Both programs offer great benefits with the difference that the unsubsidized loan is not need-based. Therefore, the student is responsible for all the interest on the loan and payment is deferred until after graduation. However, the beauty is the government sets the interest rates on all federal Stafford loans, and federal law prohibits the interest rate from exceeding 8.25 percent— currently it is set at just 6.8 percent.
Subsidized Stafford Loans are need-based loans. With this type of loan, the interest is paid by the government as long as the student is in school, as well as during the grace and deferment period of the loan.
Helping Build Responsibility
Stafford loans do not require collateral or a credit check. Because Stafford loans are taken out by the student, not the parent, the federal government makes it easy for almost every student to obtain one of these loans. Students can build credit and self-esteem knowing that they are responsible for financing at least part of their education.
When students receive their Stafford loans through NextStudent, they receive the benefit of working with a professionally trained NextStudent Education Finance Advisor as well as the benefit of an Automatic Debit Discount of 0.25 percent off the initial government set interest rate and an additional 1 percent off the interest rate after 36 consecutive on-time payments.
Easy Repayment Methods
Repayment on federal Stafford loans usually does not begin until six months after graduation. Typically the minimum monthly payment is $50 and is dependent on the borrowed amount. In addition, there are no prepayment penalties. Deferment, forbearance and income-sensitive repayment options are also available. Both unsubsidized and subsidized Stafford loans qualify for NextStudent’s Federal Student Loan Consolidation Program, which eliminates the hassle of writing multiple checks and keeping track of multiple rates by bundling several loans into one single loan.
Federal Stafford loans are a great way for college bound students to get the funds they need to get the degree needed for their future. NextStudent has numerous options and benefits to help student borrowers get on the right track to their education.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans.
============================ The End =========================
0 comments:
Post a Comment