Stafford Loan
FAQ
Stafford Loan FAQ
Does
my college accept Stafford Loans?
Some
colleges do not accept Federal student loan programs but most
do. Ask your student aid officer for information about a Stafford
Loan.
I
still live with my parents or legal guardian. Am I eligible for
a Stafford
Loan?
Yes
as long as you meet the basic Stafford Loan guidelines it does
not matter if you live at home or not. There are some guidelines
which affect whether or not you're a "dependant" or
an "independent" student but they have to do with financial
contributions from family members and not where you actually live.
How
long does it take to be approved for a Stafford Loan?
It
can take up to 90 days to process your Stafford Loan application
but often times it is completed in 30 days or less if there are
no problems.
When
do I have to start repaying my Stafford Loan?
Unless
you took the "immediate repayment" option, where you
started making your payments the month after you received your
Stafford Loan, then your first payment is due 180 days (6 months)
after graduating or after leaving school for more than six months
regardless of whether you graduated or not.
Do
I remain eligible for an already approved Stafford Loan if I change
schools?
Yes,
as long as your new school participates in the Stafford Loan program
and you continue to meet the other eligibility requirements.
What
is a "half time" student?
If
your school uses credit hours and semesters, trimesters, or quarters,
“half time” means that you are enrolled at least six
semester hours or quarter hours per term if you are in an undergraduate
program.
If
your school uses credit hours but does not use semesters, trimesters,
or quarters then “half time” means that you are enrolled
in at least 12 semester hours or 18 quarter hours per year for
an undergraduate program.
If
your school measures your attendance by standard "hours on
the clock" then “half time” is at least 12 hours
of attendance per week for an undergraduate program.
These
are only general guidelines. Your school may be different. Check
with your financial aid office for all of the facts.
I
have bad credit. Can I still qualify for a Stafford Loan?
Yes. Eligibility requirements do
not include a credit check of any sort.
What
happens if I can't repay my Stafford Loan?
If
you haven't defaulted on your Stafford Loan yet then you can apply
for an economic hardship forbearance through the financial aid
office of the last school that you attended.
Once
the your forbearance is approved you will have to apply for a
federal student loan consolidation which will lower your monthly
payments and extend the repayment period.
If
you have already defaulted on the loan then you must apply for
a defaulted student loan consolidation through the financial aid
office of the last school that you attended.
Under
certain circumstances you can apply to have your Stafford Loan
cancelled or forgiven. Again, see the financial aid office of
the last school that you attended for more information?
Who
is this guy Stafford and why is he loaning all of this money?
The
Stafford Student Loan Program (formerly called the Guaranteed
Student Loan Program) is named in honor of Senator Robert Theodore
Stafford, a Vermont Republican who served in the U.S. Senate from
1971 - 1989. He was, and remains, a staunch supporter of education
and has dedicated much of his life to helping students achieve
their educational goals. The money that is loaned out in the
Stafford Loan program is not his, however. It belongs to the U.S.
Government and is funded from tax revenues paid by taxpayers everywhere
in the U.S.
