Federal Stafford student Loans - Pros and Cons of Federal student Consolidation Loans

The main components of the federal Stafford pupil loan are the two types of financing programs for post-secondary students.

Stafford loans are under the supervision of the Us group of schooling and contain the William D. Ford Federal Direct Loan (Direct Loan) agenda and the Federal house schooling Loan (Ffel) Program.

Student school loan

Only students can apply for a Stafford loan by filling an Fafsa (Free Application for Federal pupil Aid) and send it to anyone school they want. Once the form is reviewed, the school decides the financial eligibility.

For direct pupil loans, the federal government is the lender but the Ffel agenda allows you to select the lender using a list offered by the school or a excellent lender.

Under this program, the federal government will certify for the loan.

The loan can be subsidized (the federal government pays the accrued interest while you're in school) or unsubsidized (the accrued interest will be included in your loan balance).

If a pupil brings all the precise documents, then he/she can advantage from a subsidized Stafford loan.

Each year in school influences the federal Stafford loan limits and also the subsidized / unsubsidized financing. Below you can find the current regulations that can work on your loan:


- The prestige checks are not required because the Federal government guarantees for the loan.

- The fixed rate interest rates are the lower interest rates on the market

- The repayment plans offer very flexible terms. This means that you will set the payment plan that fits you best and also you can join your other loans into a singular and more affordable one.

- During pupil enrollment the repayment is deferred.


- Sometimes the loan limits are insufficient especially considering today's post-secondary schooling costs.

- You have to submit a Fafsa (Free Application for Federal pupil Aid).

- You have to ask for Stafford loans every year and in time this leads to multiple payments and loans that will work on your post-graduation life.

- You will only direct the use of the funds because they are processed and collected only by the school for your lab fees, books, tuition, etc.

Federal Stafford student Loans - Pros and Cons of Federal student Consolidation Loans

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