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Schools generally participate in one of these Stafford Loan programs: The Federal Family Education Loan (FFEL) Program The William D. Ford Federal Direct Loan Program. Under the Direct Loan Program, the funds come directly from the federal government. Funds for your FFEL will come from a bank, credit union, or other lender that participates in the program. The terms and conditions of both lending programs are similar. The amounts you may borrow are the same whether you get a Direct Stafford Loan or a FFEL Stafford. The major differences between the two programs are the source of the funds and certain repayment provisions. For either type of Stafford Loan, you must fill out a Federal Student Aid Application (FAFSA). After your FAFSA is processed, your school will review the results and will inform you about your Stafford Loan eligibility. You will also have to sign a promissory note. If you have financial need remaining after your EFC, the amount of any Federal Pell Grant funds you are eligible for, and aid from other sources are subtracted from your cost of attendance, you can borrow a FFEL or Direct Loan to cover some or all of that remaining need. If you are eligible, the government will pay the interest on your Stafford Loan while you're in school, for the first six months after you leave school, and when you qualify to have your payments deferred. This type of lending is subsidized. If you are eligible for a subsidized loan, the government will pay interest while you're in school, for the first six months after you leave school, and when you qualify to have your payments deferred. Depending on your financial need, you may borrow subsidized money for an amount up to the annual borrowing limit for your year in school. You might also be able to borrow funds beyond your subsidized amount or even if you don't have demonstrated financial need. In that case, you'd receive an unsubsidized loan. Your school will subtract the total amount of your other financial aid from your cost of attendance to determine whether you are eligible for unsubsidized lending. Unlike a subsidized loan, you are responsible for the interest from the time the unsubsidized loan is disbursed until it is paid in full. You can choose to pay the interest or allow it to accumulate and be capitalized (that is, added to the principal amount). You can receive a subsidized and an unsubsidized loan for the same enrollment period as long as it does not exceed the annual limits. The Stafford Loans is a federal education loan that is provided through federal government. It provides you the financial support for your expenses which will be in your studies like books and study material, hostel charges and other charges for you.

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This is when a lender, or the Dept. of Ed., pays off your current loans and gives you one new loan with a fixed interest rate. The consolidation loan can have a repayment period of 15 years to 30 years, depending on the loan amount. you can pay the consolidation loan off at any time without a prepayment penalty. The monthly payment on the consolidation loan is generally 50-60% less than the payments on the unconsolidated loans.

If you need help with consolidating your student loans, please click on the link at the bottom of this text box.

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Q: What is Stafford Loan Consolidation?
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Where are questions answered for Stafford loan consolidation?

In order to get Stafford Loan consolidation, you must include your benefactor's last 2 income tax returns. After you have completed your degree, you must give Stafford your tax return every year.


How can one get a consolidation student loan?

"There are several ways one can get a consolidation loan. In the United States, there is a Federal student loan consolidation program that allows students to consolidate Stafford loans, PLUS loans, and Federal Perkins Loans into a single debt. One can also attain a consolidation loan through a private lender. However, the terms vary from lender to lender such as forbearances and deferments."


Where can one find federal college loan consolidation?

One can find Federal College Loan Consolidation at several facilities of the Federal College Loan Consolidation located at different outlets of Federal College Loan Consolidation.


What is the best way to get a consolidation loan if you have bad credit?

In the US, you can consolidate your loans even with bad credit if they are Federally Guaranteed student loans, like Stafford loans. If you want help with the consolidation of your student loans, click on the link below.


What does DLSTFD loans mean?

Direct Subsidized Stafford Loan


Can you convert a stafford loan to a perkins loan?

No.


How easy is it to get a debt consolidation loan?

I have learned there is really no such thing as a consolidation loan anymore. The banks and other loan agencies do not carry this particular loan anymore.


Where can consolidation loan rates be compared?

There are several places one can compare consolidation loan rates. These websites include Bank Rate, Loan Consolidation, Lending Club, FinAid, and Lending Tree.


Can you get a stafford loan and another loan at once?

Sure.


What are the student loan consolidation interest rates?

As of July 2010, you can get a student consolidation loan through the federal government. The interest rate can range from 6.62%-8.25%. 8.25% is cap for any student loan consolidation.


Which companies help you save money plus assist with loan consolidation?

Some companies which help you save money and assist with loan consolidation include Wells Fargo and FinAid. You can get help with your Loan Consolidation from their websites.


Does the Higher Education Act provide for student loan consolidation?

The Higher Education Act does provide student loan consolidation under the Federal Family Education Loan and Direct Loan programs. The loan consolidation may lower interest rate and extend the amount of time to repay.