The reality is that a majority of students need loans to get through college these days. Perhaps you qualify for scholarships and subsidized Stafford loans, and still find that it’s not enough. Or, it’s been determined that you don’t have sufficient financial need to receive a subsidized loan, but you aren’t going to make it without some assistance. In most cases it makes more sense to apply for an unsubsidized Stafford loan than it does to get one from a bank or other source.
- Even though the interest rate is more for an unsubsidized loan than a subsidized, it is still a decent rate, and will not change during the life of the loan.
- Almost everyone qualifies as long as you are at least a half-time student.
- There are no credit checks.
- You will have to pay interest on the loan while you are in school, but you won’t be required to begin paying it back until you graduate.
- When it comes time to begin paying it back, there are many different options including basing your payment on your income, or starting your payment with a low amount and increasing it as your income increases.
- You won’t be penalized if you choose to pay your loan back early.
- If you have several Stafford loans, you can apply to have them consolidated, resulting in a lower monthly payment.
- If you lose your job or are off work due to illness, you can apply for a temporary deferment of your loan repayments.
- Going in to the military or employment in certain fields may entitle you to a reduction in the amount you have to repay.
Remember that in order to be considered for an unsubsidized Stafford loan, you need to fill out the FAFSA ( Free Application for Federal Student Aid). Make sure you meet the deadline. For more information on Stafford loans and information about alternative student loans, visit this site: http://www.staffordloan.com/.