The Stafford Loan
Will you be starting college soon? Will you be starting next year? If you are, you are probably frantically trying to get the money together to pay for it. College is expensive and you probably won’t be able to pay for it with the money you make from one summer job. You’ll need to look for scholarships and grants, and save every penny you make.
Some people are very fortunate when it comes to paying for college. A lucky few are born into a family with wealth and have their college education easily paid for. Others are extremely smart and get full ride scholarships to the first college they choose.
The rest of us don’t have these luxuries, no matter how hard we try. We have to try to save by going to a state school or a community college first. We apply for every scholarship that we even just remotely qualify for, and we save every penny. After that, we have to get loans.
As bad as it sounds to have to take out a loan, if you can’t pay, you have to do it. As much as you hate to do it, it’s just what you need to do. Most college students will have to take out a student loan.
The first place you should look when getting a loan is with the government. Most other personal loans have much higher interest rates. You could even pay with a credit card if you want, but they will charge you a huge interest rate that you must avoid at all costs to save a lot of money. The first government student loan you should look at is the Stafford Loan.
This affordable loan is available for use for college tuition at any two or four year university, college, or trade school. You are allowed to borrow up to $4,000 a year, every year. The Stafford Loan is available as subsidized or unsubsidized.
If you have great financial need, you may qualify for a subsidized loan. With this loan type, the government will pay the interest on your loan throughout college and until six months after you graduate.
If you need to take out a loan for college, the Stafford loan should be the first place you look. It can help considerably. Just make sure you know you will have to pay it back and that you have a plan to do so.
