How to Apply for a Stafford College Loan

There are many federal and private options out there to help you cover the cost of your education.

Stafford loans are federalized subsidized loans that help economically disadvantaged prospective students cover the cost of college. If it wasn't for the Stafford loan programs, students nationwide would end up with thousands of dollars in debt that was attached to private sector interest rates. Stafford loans typically accompany a broader federal and school subsidized financial aid package, much of which does not need to be repaid by students upon graduation.

Things You'll Need

• FAFSA form
• Personal information

Instructions

1. Fill out the Free Application for Federal Student Aid, which is also known as FAFSA. FAFSA applications are reviewed by the Department of Education to assess whether prospective students qualify for federal aid. Before filling out FAFSA, you should have your personal identity information and that of your parents and/or guardians (e.g. Social Security numbers, birth dates, addresses, phone numbers, etc.). You should also have the most recent tax return forms of your parents, including the most recent W-2's (i.e. pay stubs). The form itself is straightforward and self-explanatory and can be filled outline (see the link in Resources).

2. Contact the business office on your campus, and ask if you qualify for a federal Stafford loan. This process is straightforward and should be based purely on the data in your FAFSA. However, the exact figures determining whether a prospective student can qualify for FAFSA can change year to year, so it is essential that you check with your business office. Also, be prepared to fill out a FAFSA each year that you are in college in order to reapply for a Stafford loan.

3. Assuming that you have qualified for a Stafford loan, the business office of your college should have a set of forms that you need to fill out. Review the different banks that are coordinating with the Department of Education to provide Stafford loans, and choose the bank with which you feel most comfortable. Stafford loans usually come with a standardized interest rate, and banks participating in the program will have a specific interest rate associated with it. Nonetheless, it never hurts to review loan papers before signing them.

Tips & Warnings

• Ask your college's business office about other opportunities to receive federally subsidized loans. These loans can save you thousands of dollars.

References

• Department of Education: Free Application for Federal Student Aid---Before Beginning a FAFSA Overview

Resources

• Student Loan Network: Stafford Loan
• FAFSA