Stafford Loans

[starvingstudent]

Question?

 

What is the difference between a Stafford Loan and a private loan?

Is a Stafford Loan easier to qualify for? Must I pay off old debts to qualify for a Stafford Loan?

 

Anybody with more information please submit...

 

Thanks

[fla-tan]

Question?

 

What is the difference between a Stafford Loan and a private loan?

Is a Stafford Loan easier to qualify for? Must I pay off old debts to qualify for a Stafford Loan?

 

Anybody with more information please submit...

 

Thanks

 

starving

 

Stafford loans are not supposed to be credit based, unlike private student loans. Stafford loans are guaranteed by the Federal Government and as long as you qualify incomewise and you have no defaults or any other type Federal debt in default then you will get the loan. Private obligations that are unpaid do not affect your ability to get Stafford loans.

 

 

fla-tan

[julio]

Certain stafford loans are also interest free while you stay in school. Just make sure you don't get too many because you do have to pay them off...eventually. They do have good repayment plans and I belive you can take up to 10 years to pay them after you graduate or leave school.

 

-Julio

[starvingstudent]

If I am eligible for a Stafford Loan and the max (for premed) is $6500/yr

but the tuition alone (without housing, books, etc) is $8500, will other lenders supplement the Stafford maximum loan amount?

 

Thanks,

 

JayVon

[starvingstudent]

If I am eligible for a Stafford Loan and the max (for premed) is $6500/yr

but the tuition alone (without housing, books, etc) is $8500, will other lenders supplement the Stafford maximum loan amount?

 

Thanks,

 

JayVon

[julio]

you need to get in contact with your financial aid dept. they're going to tell you to fill out your FAFSA and from there they'll calculate your E.F.C. or Expected Family Contribution. Then, the formula is (cost of school - EFC = Aid) If your fina dept. determines you don't need the loans, then you don't get them. However, I've found that persistence and calling helps and they can get you other loans. Most of the time, these will be unsubsized which means the interest is not paid off by the government while you are in school. All in all, give them a call and tell them you need money.

 

-Julio

[starvingstudent]

Thanks,

That is what I was afraid of. The tuition is $8500. and my EFC is $4100. Scarry. The reality is, since my school is out of the country - I won't have any of the $4100 that they say I am expected to pay.

 

Does room/board (even if I am not living on the campus) and bringing children down change the amount?

[julio]

yes, room and board is added to your cost of attendence. Many schools offer "special condition" forms that allow you to mark down why you need more money. I filled one out when my step-dad had a heart attack so I'm sure more dependents in your household would constitute as an increase in need. Don't forget that schools can adjust your EFC as they see fit. So go in there being very courteous and respectful....it might get you a lower EFC.

 

-Julio

[starla]

Your eligibility will also depend on whether you are dependent or independent. I'm not sure what year you are in school, as there is no limit of $6500 for any year for Stafford loans. Here's the breakdown of annual loan limits:

 

Dependent Students

Freshmen - $2625

Sophomore - $3500

Junior/Senior - $5500

 

Independent Students

Freshment - $6625 (up to $2625 subsidized)

Sophomore - $7500 (up to $3500 sub)

Junior/Senior - $10500 (up to $5500 sub)

 

Your school will base your aid eligibility on the cost of attendance, which generally includes tuition and fees, room and board, books, travel, and miscellaneous expenses. At the school I'm currently attending the COA is ~$25K/yr, of which ~$13K is tuition. So you might be better off than you think.

 

Also, the unsubsidized Stafford loan will be available to you no matter how high your EFC, as it is not need-based. As long as you are attending at least half-time in a degree program, and you don't have any current student loan defaults, you should be eligible for at minimum the unsubsidized loan. The sub is clearly more attractive, as the government pays the interest on this loan while you're in school/grace period, but the rate right now is 2.82%, so you wouldn't be gaining at too fast a pace. You can also choose to pay the interest on your unsub loan while you're in school.

 

There is no credit check on these loans.