Reply
Frequent Contributor
Posts: 285
Registered: ‎03-29-2008
0

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.
Highlighted
New Contributor
Posts: 123
Registered: ‎05-01-2007
0

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.
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.