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Affordable Federal Stafford loans at financialaid.com

Posted on June 13, 2007
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My cousin just applied for a federal stafford loans to further his studies recently. He didnt know that there are two kinds of Stafford loans that he can apply for, a subsidized one and an unsubsidized one. Stafford loan is simply a Government guaranteed loan that offerslow interest rates and also deferred payment options.

Now, he told me that the differenc between a subsidized Stafford loan and an unsubsidized Stafford loan is that with a subsidized Stafford loan, the government pays interest on the loan for him until he graduate from college. To qualify for a subsidized Stafford loan, he has to proof to the Government of his financial need. Although an unsubsidized Stafford loan still offers him the same low interest rate as the subsidized version, but then he hse to pay the interest on the loan from the date of origination.

My cousin is a U.S. citizen and has a high school diploma. He has never defaulted on any other student loans before and he’s enrolled for a year in an accredited degree program. Therefore, he’s qualified for a Stafford loan. He took up the subsidized loan as he will only repay if once he graduates.

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