Subsidized+Stafford+Loans

__“Subsidized” Stafford Loan__
 * What is a subsidized loan? **

A subsidized loan is basically a benefit that the government provides to the public to remove or help individuals or groups with burdens such as financial obligations or debt owed to an academic institution / school. It was created to assist students by giving them some sort of tax break or tax reduction while attending school, allowing them to pursue a higher education. Federal subsidized loans are based on the financial needs of the person(s) applying.

Read more: [|__http://www.investopedia.com/terms/s/subsidy.asp#ixzz1dpOjwROg__]


 * What are the benefits of getting a subsidized loan? **

- Low and fixed interest rates as low as 3.40% - No payments need to be made while enrolled school or deferment - No interest in inquired while enrolled in school or deferment - Applicants are not entitled to have a credit upon acceptance - Federal government “subsidizes” or pays for your interest inquired the individual is attending school


 * How can you be eligible for a subsidized loan? **

- First and foremost the applicant has to be a US Citizen or at least an eligible non-citizen - The applicant has to be enrolled in school or in any accredited academic program - They have to have completed a Free Application for Federal Student Aide (FAFSA) form - Applicant must have obtained a High School Diploma or GED equivalent - Must not have delinquent or default on any existing federal loan

If the applicant has met all of these requirements the Department of Education and the Academic Institution will dictate whether the applicant is eligible to borrow money if qualified.

The allotted funds permitted to qualified applicants are such as follows:

Freshmen: $3,500 per year Sophomore: $4,500 per year Junior: $5,500 per year Senior: $5,500 per year

To understand the difference between Subsidized and Unsubsidized loans you can visit the following link for more information: [|__www.staffordloan.com/stafford-loan-info/faq/whats-the-difference-between-unsubsidized-and-subsidized-loans.php__]