How Do Students Apply For A Direct Stafford Loan?

How do students apply for a Direct Stafford Loan?
The first step is to fill out and submit the Free Application for Federal Student Aid (FAFSA®) form. You can complete the FAFSA form online at fafsa.gov.

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Introduction

The first step in applying for a Direct Stafford Loan is to complete a Free Application for Federal Student Aid (FAFSA). You can complete a FAFSA online at www.fafsa.ed.gov or by paper application. Be sure to list the school’s code on your FAFSA so that your information will be forwarded to the school. The U.S. Department of Education’s website also has a helpful video tutorial on completing the FAFSA: www.youtube.com/watch?v=2y_tUP O_v30

Once you have completed the FAFSA, your school will send you information about what types and amount of aid you are eligible for. If you are eligible for a Direct Stafford Loan, you will be required to complete a Master Promissory Note (MPN). An MPN is a legal document in which you promise to repay your loan and any accrued interest and fees to the U.S. Department of Education. You can complete an MPN online at www.studentloans.gov or by paper application.

Once you have completed the MPN, your school will disburse your loan funds to you in two installments, generally half at the beginning of each semester or term of enrollment..

Applying for a Stafford Loan

The Stafford Loan is a student loan offered to eligible students enrolled in accredited schools to help pay for their educational expenses. The Stafford Loan is a federal loan, meaning it is backed by the U.S. government. This type of loan is also known as a Direct Stafford Loan.

The FAFSA

In order to apply for Stafford Loans, you will need to fill out and submit the Free Application for Federal Student Aid (FAFSA). This is the form used by the government to determine your eligibility for financial aid, and it is required for all students who wish to apply for Stafford Loans (or any other type of federal financial aid).

You can fill out the FAFSA online at www.fafsa.ed.gov. The website will walk you through the process step-by-step and will provide you with instructions on how to gather the necessary information and documents.

You will need your most recent tax return (or your parents’ tax return if you are a dependent student), as well as your bank statements and investment records. You will also need information on any other financial aid you have received or are expecting to receive, such as scholarships or grants.

Once you have submitted the FAFSA, you will receive a Student Aid Report (SAR) that summarizes the information you provided on your FAFSA. Review the SAR carefully to make sure that all of the information is correct, and make any necessary corrections.

The next step is to contact your school’s financial aid office to find out what additional paperwork or steps you need to take in order to complete the process of applying for Stafford Loans at your school.

Stafford Loan Eligibility

To be eligible for a Stafford Loan, you must:

-Be a U.S. citizen or eligible noncitizen
-Have a valid Social Security number
-Be enrolled at least half-time in an eligible degree or certificate program at a school that participates in the Direct Loan Program
-Not have defaulted on any federal student loans or owe money on a federal student grant
-If you’re a male student, you must be registered with the Selective Service System (you can register at www.sss.gov)
-Meet additional requirements that may be specific to your school

Types of Stafford Loans

If you’re a student who needs financial aid to help pay for college or career school, you might be interested in applying for a Stafford Loan. Stafford Loans are direct loans that are made by the federal government. There are two types of Stafford Loans: subsidized and unsubsidized.

Subsidized Stafford Loans

Subsidized Stafford Loans are available to undergraduate students with financial need as determined by the Free Application for Federal Student Aid (FAFSA®). The federal government pays the interest on a Subsidized Stafford Loan while the student is in school at least half-time, for the first six months after the student leaves school (referred to as a grace period*), and during a period of deferment (a postponement of loan payments).

A student is not responsible for the interest that accrues on a Subsidized Stafford Loan during any of these periods. If the student chooses to pay the interest that accrues during these periods, he or she may do so.

Unsubsidized Stafford Loans

Unsubsidized Stafford Loans are not based on financial need. Interest is charged from the time the loan is disbursed until it is paid in full. The borrower is responsible for paying the interest even while in school and during periods of deferment or forbearance. Deferring interest payments will increase the total amount you owe because you will be charged interest for a longer period of time. The good news is that you don’t have to make any payments on your Stafford Loans while you’re in school as long as you remain enrolled at least half-time.

There are two types of Stafford Loans: subsidized and unsubsidized

Conclusion

Students who are interested in applying for a Direct Stafford Loan should complete the Free Application for Federal Student Aid (FAFSA) form. Once the FAFSA has been processed, the student will receive a Student Aid Report (SAR) which will list the types and amount of financial aid for which the student is eligible. If the student is eligible for a Direct Stafford Loan, he or she will then need to complete a Master Promissory Note (MPN). The MPN is a legal document in which the borrower agrees to repay the loan according to the terms specified.