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Frequent Contributor
ace9848
Posts: 285
Registered: ‎03-29-2008
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Can someone tell me - what does does a Stafford Loan mean?

Can someone clarify what a Stafford Loan is? Pretend (or just assume!) that I am an idiot and have never heard of such a thing. What is the definition of Stafford? Is this just undergrad or can a grad get it too?
 
Thanks.
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CreditMizer
Posts: 123
Registered: ‎05-01-2007
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Re: Can someone tell me - what does does a Stafford Loan mean?

Stafford loan is a loan guaranteed by Federal Goverment. Since the loan is guatanteed you can get it with (almost) any credit score.

The loans use to be issued directly by goverment but now are issued by private banks but only "backed" by goverment. The name stafford loan is still used though.

To get stafford loan and any financial aid you first step is to file a FAFSA.

You can't apply for a Stafford loan like you would a credit card or car loan. Instead you file a FAFSA and release data to your school. The combination of results from FAFSA, cost of school, and your assets will result in a "package" school will offer which will include stafford loans, grants, reduced tuition, etc.

Generally speaking getting a Stafford loan is better than a private loan because rates are substantially lower especially for those with lower credit ratings.

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