The Best Deal in Student Loans for Undergrads

Federal Stafford student loans offer students access to federally financed educational loans at premium interest rates. If you successfully apply for a federal Stafford student loan, you can expect a low interest rate of 6.8% and the option of making no payments while youre still attending classes full time. You should also check out PLUS student loans.

What Makes Federal Stafford Student Loans So Desirable?

To being with, there are no prepayment penalties or guarantee fees. Additionally, students who take out a federal Stafford student loan are eligible for federal loan consolidation, tax deductions, and flexible repayment options. Worried about bad credit? Not a problem! Because the federal government backs your federal Stafford student loan as a secured educational loan, you dont have to worry about credit checks or providing collateral.

Who Can Qualify For a Federal Stafford Student Loan?

Federal Stafford student loans are available to U.S. citizens as well as eligible non-citizens who are attending college at the undergraduate level. All you have to do is fill out a FAFSA in conjunction with your universitys financial aid office. Filling out a FAFSA is free and can be complete over the internet.

There Are Two Types of Federal Stafford Student Loans

Federal Stafford student loans are offered in subsidized and unsubsidized packages. Usually, a student is offered a combination of the two in order to meet the cost of college. A subsidized federal Stafford student loan is awarded based on financial need. Under a subsidized loan, the government agrees to pay the interest on your loan while you are still in college. All students are eligible for unsubsidized federal Stafford student loans, irrespective of financial need. With an unsubsidized federal Stafford student loan, students are required to pay all interest fees that accrue before and after graduation.