No
Credit Checks
since the funds are guaranteed
by the federal government,
your credit report is not
used in qualifying you for
the loan: see
qualification parameters
Low
Interest
federal student loans are fixed rate loans
that remain fixed for the entire term of the loan; current rates are
lower than most other financing options: view
interest rates
Flexible
Repayment Plans
student loan payments do
not have to be repaid until
180 days after you leave
or graduate from school.
The federal government offers
flexible repayment plans
that can fit your budget. You
can even consolidate your
federal loans into one,
low repayment plan: view
our member student
loan consolidation center
for information
Disadvantages of Stafford Student Loans
Low
Amount Limits
the biggest disadvantage
of stafford loans is the
limited loan amounts — only $3,500 for first-year
students. Very small amounts considering
the cost of education: see
loan limits
Requires
Federal Filings
you must file the FAFSA
form with the federal government
in order to apply for stafford
loans. The FAFSA filing
is used by colleges to determine
your financial aid award: see
FAFSA file
Multiple
Borrowings
you have to file and apply
for a loan each academic
year.
Limited
Use of Funds
your stafford loan is processed
by your college to pay tuition,
books, and housing. You
cannot use your loan to pay other education-related
expenses.
