| What is the most popular type of student loan now? | | | | These limits are not as great as you may think. Almost |
| The Stafford loan. More than 90% of all money | | | | 10% of the Stafford loans granted were given to |
| borrowed for college fall under the category of a | | | | families who earnings were in 6 figures. However, for |
| Stafford loan. This loan was first started to help low | | | | the most part Stafford loans are reserved for low |
| income families be able to send their children to college. | | | | income families. The large majority of these loans are |
| The perimeters for the loan were not overly confined | | | | granted to families whose income is less than $50,000 |
| when the program was instituted in 1965. Since them | | | | a year. As was mentioned earlier the perimeters are |
| the perimeters have expanded to the point that this | | | | broad, but the loan program does benefit the needy. |
| loan type is one of the Federal Education Loan | | | | However, the perimeters do exist and not everyone |
| Program options for many. | | | | will qualify. For students that cannot qualify for a |
| The two different classes of Stafford loan, | | | | subsidized loan an unsubsidized loan is an option. The |
| unsubsidized and subsidized, helped to extend its | | | | Stafford loan that is unsubsidized means that you are |
| perimeters greatly since its inception. | | | | still able to defer payments until six months after |
| With a subsidized loan students do not begin | | | | completely your education. However, during all of that |
| repayment until the student completes his education. | | | | time interest will accumulate and compound on the |
| For all students maintaining at least a half time course | | | | principal of the loan. |
| schedule the government will pay all interest that | | | | It is difficult to illustrate how much interest will |
| accumulates on the loan. The interest payments do | | | | compound over the life of an unsubsidized Stafford |
| not become the responsibility of the student until after | | | | loan. To know how much your loan will cost go to |
| he completes his education. | | | | bankrate.com/brm/mortgage-calculator.asp. and fill in |
| Families who desire this type of loan must first visit | | | | your loan terms to see exactly how much interest you |
| fafsa.ed.gov to complete a Free Application for | | | | will be required to pay. |
| Federal Student Aid (FAFSA). The FAFSA application | | | | For the average student, there is a need to borrow |
| will contain information to determine what the family's | | | | between $10,000 and $20,000 to fund their education |
| financial status is. Subsidized federal loans are granted | | | | and these funds are generally obtained through a |
| only to families with financial limits. | | | | combination of loan types and programs. |