College Loan Consolidation, Federal Loan Consolidation, Private Loan Consolidation, Student Loan Consolidation

America's Top Student Loan Provider




What is a Stafford loan?
What is the difference between a subsidized Stafford loan and an unsubsidized Stafford loan?
Am I eligible for a Stafford loan?
How do I get a Stafford loan?
How much can I borrow with a Stafford loan?
How are Stafford loans distributed?
What is the interest rate on a Stafford loan?
Who offers Stafford loans?
What are the payment terms for a Stafford loan?
Can one postpone repayment of a Stafford loan?
Are there any charges for a Stafford loan?
Who is considered an Independent Student?
What if I have other questions?
Q: What is a Stafford loan?
A: A Stafford loan is a government guaranteed loan offering low interest rates and deferred payment options. There are two types of Stafford loans: subsidized and unsubsidized.
^ Top
Q: What is the difference between a subsidized Stafford loan and an unsubsidized Stafford loan?
A: With a subsidized Stafford loan, the government pays interest on the loan until you graduate from college. To qualify for a subsidized Stafford loan, you must demonstrate financial need. An unsubsidized Stafford loan still offers you the same low interest rate as the subsidized version, but you have to pay the interest on the loan from the date of origination.
^ Top
Q: Am I eligible for a Stafford loan?
A: To be eligible, you must:
  • be a U.S. citizen or eligible non-citizen
  • have a high school diploma or GED certification
  • not be in default on any other student loans
  • be enrolled at least half-time in an accredited degree program
^ Top
Q: How do I get a Stafford loan?
A: First, you must fill out the FAFSA (Free Application for Federal Student Aid) form at www.fafsa.ed.gov and receive your financial aid award package, which will outline what types of education funding you are eligible for, including Stafford loans. If you are eligible, you then can return to EdFed to apply for your Stafford loan by filling out our quick and simple online application. Once your information is submitted and processed, an application will be mailed to you. Simply sign, date, and return in the enclosed envelope and you're all done! There is no credit check necessary when applying for a Stafford loan.
^ Top
Q: How much can I borrow with a Stafford loan?
A: If you are an eligible dependent student, you can borrow up to:

$2,625 freshman year
$3,500 sophomore year (after one year of completed study)
$5,500 junior, senior, fifth year
8,500 graduate/professional students


If you are an eligible independent student, you can borrow up to:

$6,625 freshman year (if you combine subsidized and unsubsidized loans, no more than $2,625 may be in subsidized loans)
$7,500 sophomore year (if you combine subsidized and unsubsidized loans, no more than $3,500 may be in subsidized loans)
$10,500 junior, senior, fifth year (if you combine subsidized and unsubsidized loans, no more than $5,500 may be in subsidized loans)
$18,500 graduate/professional students (if you combine subsidized and unsubsidized loans, no more than $8,500 may be in subsidized loans)


The total outstanding debt allowable under the Stafford loan program:

$23,000 dependent non-graduate students
$46,000 independent non-graduate students (only $23,000 may be in subsidized loans)
$138,500 graduate/professional student (only $65,500 may be in subsidized loans)
^ Top
Q: How are Stafford loans distributed?
A: Typically, it goes directly to your school's financial aid office and distributed in scheduled payments during the academic term. After the registration confirmation, the fund will be deposited into your bank account. You will be able to pick up the check from your school's financial aid office.
^ Top
Q: What is the interest rate on a Stafford loan?
A: The interest rate on Stafford loans disbursed after 7/1/06 are fixed at 6.8%. The interest rate on Stafford loans disbursed between 7/1/98 and 6/30/06 are variable and are adjusted every July 1 (based on the 91-day Treasury Bill + 1.7% while you’re in school, grace, or deferment and + 2.3% during repayment). For specific information on the current interest rates, please contact an EdFed loan specialist.
^ Top
Q: Who offers Stafford loans?
A: Each college selects either the Federal Family Education Loan Program (FFELP) or the Federal Direct Loan Program (FDLP). Both offer Stafford loans. Private lenders provide the loan funds for FFELP while the government provides the loan funds for FDLP.
^ Top
Q: What are the payment terms for a Stafford loan?
A: You can defer your loan payments until six months after graduation in both types of Stafford loans. It also has low interest rates. You have ten years to repay your loan and also the opportunity to save money by consolidating the loan. Stafford loans don't have any prepayment penalties.
^ Top
Q: Can one postpone repayment of a Stafford loan?
A: Yes. Depending on your eligibility, you may have the option to postpone or reduce your monthly payments. You may also receive deferment or forbearance benefits.
^ Top
Q: Are there any charges for a Stafford loan?
A: You will have to pay a fee of up to 4% of the loan. 3% is the origination fee that goes to the federal government while 1% is the guarantee fee that goes to the guaranty agency that insures your loans. You are not required to provide up-front money to obtain the loan, as the fees are deducted proportionately from each loan disbursement.
^ Top
Q: Who is considered an Independent Student?
A: If you fulfill any of the following criteria for the current academic year, you could be considered an independent student:
  • You should have been born before January 1, 1981
  • You should be enrolled in a master's or doctorate program (beyond a bachelor's degree) at the start of the academic year
  • You should have children who receive more than half their support from you
  • You should have dependents, besides your own children or your spouse, who live with you and who receive more than half their support from you and who will continue to do so through June 30, 2005?
  • Both your parents should have been deceased, or you should have been (until age 18) a ward/dependent of the court
  • You are a veteran of the U.S. Armed Forces (This would include students who attended a U.S. service academy and who were released under a condition other than disability).
  • You should be married on the day you apply (or separated but not divorced)
^ Top
Q: What if I have other questions?
A: If you have any questions about Stafford Loans, please email us or call (800) 821-5659 to talk to an expert loan advisor.
^ Top


How EdFed Helped others!
Thanks for making everything so clear and easy during my consolidation.
- Mike T.  Denver, CO
* Your Name: * Your E-mail Address:

We respect your privacy.
* Your Friend's name: * Your Friend's E-mail address:
Include a Message:
+ Privacy Policy
call:
(800) 821-5659

Student Loan Consolidation Info - How to Choose the Right Loan Company

This column is sponsored by Granted, America's top job search engine. The Career Resources column is presented by Granted, America's leading job search engine dedicated to getting people jobs.

Education is one of the most basic right of any human, but with the increase in prices and the costs involved in education this has made these rights turn into a privilege which very few can enjoy. Any normal person today in the whole of United States has to take an education loan at one point of time to pay for their education fees.

read more
CONSOLIDATION NEWS
Schools Will No Longer Receive Paper FAFSA Forms
(September 20, 2007)

news desk
CALCULATORS
Stafford Loan Payment Calculator
PLUS Loan Payment Calculator
Loan Consolidation Payment Calculator
Articles
Calculators
FAQs
Glossary of Terms
Loan Comparison Chart
Scholarship Search
Stafford Loans
Eligibility
Borrower Benefits
The Process
Tax Benefits
FAQ
Loan Information

Loan Balance Stafford Rate
$ %
Mo. Payments:
#of Payments:
Tot Payments:
Tot Int. Paid:
Federal loan consolidations are guaranteed by the government, and they carry the same protections and benefits as your federal student loans.
US School Directory
Comprehensive List of Schools at which EdFed Assists Students.
EdFed is a FFELP lender with lender identification number 834241.
© Copyright 2016 EdFed. All Rights Reserved.

Home · About Us · Contact Us · News · Sitemap
Career Advice · Tell a Friend · Privacy Policy · Resume Service
Resume Distribution Service · Post Resume · Job Search Course
EDFED NEWSLETTERS
Sign up for the latest news on student loans.
Email Address:
+ Most Recent Newsletter
+ Newsletter Archives