Federal Stafford Loans

A Federal Stafford loan is a type of student loan provided by the government based on financial need. There are several ways to get a Federal Stafford loan including through a bank. You may also apply for one through a credit union or directly with the government. A Federal Stafford Loan can be either subsidized or unsubsidized. The difference between the two is whether or not need exists. The subsidized version means that the government will pay the interest on the loan while the student is still in school or if he receives an extension on the time period. In an unsubsidized Federal Stafford loan, the person borrowing the money is responsible for the interest. Students can sometimes postpone the interest if need be. Most Federal Stafford loans are for the long term and usually carry low interest rates.

Benefits of Consolidating Your Student Loan

Consolidating a student loan often lowers monthly payments and allows the borrower to have more time before they have to pay back the loan. There are consolidation programs availible for both federal and private loans. College students who consolidate their loans also often save money on interest and such because the government recognizes that they are in debt due to school, so some leeway is given. Many times there are also no prepayment penalties, so that if you are ready to pay off the loan early then you can do so. Student loan consolidation is great for college students and it can make the future a lot brighter and the present a lot less worrisome. Consolidation of your college student loans can also improve your credit rating.