How to Successfully Apply for Stafford Loans Application 2020
How to Successfully Apply for Stafford Loans: Getting a loan is somehow difficult for some people. However, there is a loan that you can apply for easily and successfully. And this is the Stafford Loan. This article will guide you on how to successfully apply for Stafford Loans.
- What is a loan?
- What is Stafford Loan?
- Steps on how to successfully apply for Stafford Loans.
- FAQs about how to successfully apply for Stafford Loans.
What is a Loan?
A loan is a lending of money. And it’s by one or more individuals, organizations, or other entities to others. In loan, the recipient (i.e., the borrower) incurs a debt. And is usually liable to pay interest on that debt. This is until it is repaid as well as to repay the principal amount borrowed.
Also, a loan is defined as a thing that is borrowed. Especially, a sum of money that is expected to be paid back with interest. Furthermore, a loan is money, property, or other material goods. Those given to another party in exchange for future repayment of the loan value or principal amount, along with interest or finance charges.
Additionally, a loan may be for a specific, one-time amount. Also, it can be available as an open-ended line of credit up to a specified limit or ceiling amount.
What is Stafford Loan?
Stafford Loan is a type of federal, fixed-rate student loan. And it’s available to college and university undergraduate. Furthermore, it’s available to graduate, and professional students. Those attending college at least half-time.
Also, these loans are called direct loans. And they’re given out under the William D. Ford Federal Direct Loan Program. Additionally, they’re intended to supplement existing personal and family resources.
Also, Stafford Loan is a student loan. And it’s offered to eligible students enrolled in accredited American institutions of higher education. This is to help finance their education.
Some Steps on How to Successfully Apply for Stafford Loans
Below are some steps on how to successfully apply for Stafford Loans:
1. Know the Eligibility Requirements
One of the ways on how to successfully apply for Stafford Loans is to know the requirements. Below are some of the eligibility requirements:
- You must be working toward a degree or approved certificate at UMBC.
- Also, you must be meeting Satisfactory Academic Progress (SAP) standards.
- Furthermore, you must be enrolled for at least six credits each semester.
- Additionally, current year FAFSA is required. It’s important you pay attention here. If the FAFSA is selected for verification, all required documents must be submitted. Also, these documents must be reviewed before the loan can be processed.
2. Know the Loan Application Due Dates
One of the ways on how to successfully apply for Stafford Loans is to know the due dates. Thus, submit loan applications by the due dates. However, you can still submit loan applications after the deadline. But, the loan may not post to your account by the due date.
Below are some of the due dates:
- Fall Semester: Second week in July.
- Spring Semester: Second week in November.
- Summer Semester: First week in June.
3. Know and Understand the Loan Application Instructions
One of the ways on how to successfully apply for Stafford Loans is to understand and adhere to the application instructions. Below are some of the instructions:
- Fill out the FAFSA.
- Also, complete the Federal Direct Unsubsidized Loan Application.
- Furthermore, email the application as an attachment to Monique Howell at [email protected] Or mail it to the address on the form.
- Additionally, take note of the FAFSA tips. Some of which are: The Title IV school code (Section H) is 002133. And all graduate students are considered independent. Also, they do not need to provide their parents’ financial information. Furthermore, Master’s and Ph.D. students may request up to $20,500 in Stafford Loans per year. And post baccalaureate students may request up to $12,500 in their first year only. However, $5,500 for dependent post baccalaureate students.
- Additionally, after submitting the FAFSA, the Department of Education will send you a Student Aid Report (SAR). However, when the SAR arrives, carefully check it for accuracy. And make necessary corrections. The GSAS office will receive this information electronically.
- Also, if you are selected for verification, note. You may be asked to complete additional paperwork. Or submit supporting documentation such as proof of citizenship or income tax forms. Also, you will be notified by the GSAS Office should you be required to do so.
Furthermore, Still on the Loan Instructions
- Once you have been approved for a Stafford Loan, take note. The GSAS Office will send a loan letter to you outlining the amount and disbursement schedule for your Stafford Loan.
- Thus, you’re to complete Entrance Counseling. However, to begin your Federal Direct Unsubsidized Loan Entrance Counseling session online, go to the U.S. Department of Education’s Direct Loan Servicing website. Click the green “Sign In” button at the top left of the screen. You will need your FSA ID in order to sign in. If you have not yet created your FSA ID, you should do so first.
- Also, take note of the Sign Master Promissory Note (MPN). Once you have completed Entrance Counseling, you will need to sign your MPN.
It’s important you pay attention now. Please select “Brandeis University”; Do not select “Brandeis University-Graduate School of Arts and Sciences” on the Department of Education’s website. Failure to sign your MPN will result in cancellation of this loan under federal regulations. And if the cancellation of this loan causes a balance due on your account, a hold will be placed on your account.
- Once you have fulfilled all loan and course registration requirements, then you may file for a refund of your credit balance. And this can be done through Student Financial Services. The earliest loan credit can be released from your account is 10 days before classes begin.
FAQs About How to Successfully Apply for Stafford Loans
Below are some FAQs about how to successfully apply for Stafford Loans:
1. What Forms Does Stafford Loans Come?
Stafford loans come in two forms. Namely: Subsidized and un-subsidized. All undergraduates are eligible for the latter. But the former are reserved for students. Those who demonstrate financial need.
2. When is the Interest Rates Set?
Interest rates on both types of Stafford loans are set annually on July 1. Also, the rates are locked in for the life of the loan. But interest rates for new loans will fluctuate from year to year.
3. Does Every Student Get Approved for a Stafford loan?
Almost. However, those who cannot get approved are those who are only attending college part-time. And have defaulted on other college loans. Or who are not U.S. citizens do not qualify.
4. Are Stafford Loan Payments Tax Deductible?
It depends on your income when you start repaying. Generally, a single person earning less than $80,000 can deduct up to $2,500 of student loan interest payments.
5. When Do I Have to Start Repaying My Stafford Loan?
The first bill comes due six months after you’ve left school. Whether that’s after graduation or after you’ve dropped out.
You can now successfully apply for Stafford Loan. Make sure you follow the steps appropriately. Also, it’s important you pay attention to them as well. Feel free to share this article to others.
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