Financial Aid emergency question

swimcatsmom
Sun, 13 Dec 2009 16:59:01 +0000

All federal student financial aid including Stafford loans is awarded by the school. You cannot apply directly to the govt for a Stafford loan. You have to submit FAFSA to your school(s) and they award you any aid you are eligible for. When you are awarded a Stafford loan you either have to the apply for the loan through a private lender (who has to verify with the school that you are eligible for the loan), or some schools are direct lenders and the loan process is doe through them. Either way you have to submit FAFSA to the school to be eligible for the Stafford.

All students that are eligible to file FAFSA are eligible for the Stafford loan. It does not require that there be financial need. When there is financial need up to $3500 of the $5500 a freshman is eligible for may be subsidized (govt pays interest while in college), if there is no need the entire loan is unsubsidized.