Stafford Student Loan
There are 2 types of Stafford student loan offering by federal government - subsidized and unsubsidized, is specially design for graduate and undergraduate students. The rates of the loan is generally lower than the private loan. That is the main reason, Stafford loan is more preferable by students, if student really need to take out the money, please go for Stafford loan instead of private loan. Interest rate of private loans is much higher than Stafford loans, some times the private loan's rate even reach to 12%.
When applying this loan, there are 2 main application form need to be fill and submit:-
1) Free application federal student aid (FAFSA) - School will use the information from FAFSA to determine how much aid you will receive, Stafford loan is just part of it. Many student complete the form by FAFSA online.
2) Master Promissory Note (MPN) - MPN is a legal document that borrower promise to repay the loan plus interest back to the department. Borrower will receive this document together with the 1st time obtain Stafford loan. The document also stated all terms and conditions of the loan.
Choosing a loan is not just obligation of parent, student should take a vested interest in student loan rates and decide what's best for them. After grace period the repayment will begin and the debt carry by student normally more than 10 years. Thus, student should initiative study the student loan information, knowing what kind of debt will be bear and aware the responsibility of a borrower.
For other student loan information, please check out Student Loans Guide instead of Stafford Student Loan
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