Unsubsidized Stafford Loan
The Stafford loan is a federal government sponsored loan. This low cost loan is designed to help students with the costs of continuing their education. While there are two ways that you can take the Stafford Loan, the Unsubsidized Stafford Loan path is one that is few people think about.
For this reason let’s see how applying for an Unsubsidized Stafford Loan will be of help. The first step to getting this loan is the same as the Subsidized Stafford Loan. You will need to fill out and submit a FAFSA form. Now just in case you are wondering what FAFSA stands for let’s clear this matter up. FAFSA is the shortened form of Federal Application for Federal Student Aid.
As you see calling this aid FAFSA is easy than Federal Application for Federal Student Aid. Once you have filled this form out you will need to submit the form on time. After the form has been reviewed you should get a financial aid award letter. This letter will show that you have the eligibility to apply for an Unsubsidized Stafford Loan.
The next steps to getting your loan is to complete a Master Promissory Note – also called MPN – and you will also need to have a contract drawn up between your lender. This contact should state that you agree to the terms of the contract and that you will repay the loan. You can use the College Board to choose a suitable lender or you can get recommendations from your school’s financial office.
Once the details of your application have been approved of you can choose to use the Unsubsidized Stafford Loan. The details of this loan are very simple to see. To apply for this loan you must pass the eligibility test. In this test you will need to be a US citizen or an eligible non-citizen. The amount that you will receive for the first year in college or university is about $2, 625 to $2,630.
For the next year you will receive about $3,500. This amount is for the entire year. During the time period of the third to the fifth year in college or university you will receive about $5,500. The total amount of money that you can expect to receive from the Unsubsidized Stafford Loan is about $18,500. This amount is the combined amounts that are found in the subsidized and Unsubsidized Stafford Loan.
There are additional amounts which are provided to independent students. The first year these students will also receive about $4,000. During the third to fifth year they will receive about $5,000. The interest rate for the Unsubsidized Stafford Loan is a fixed rate of 6.8%.
You will have a time period of ten years to repay the Unsubsidized Stafford Loan. This time period should enable you to find the money that you will need to pay back the loan. As you see there are very generous terms for you to enjoy when you apply for this Unsubsidized Stafford Loan.