Stafford Loan Information

When it comes to the financial aid process, people often ask "Where do I begin?"

We're here to help and guide you throughout this process. This page outlines the steps to applying for a Stafford Loan.

Basic Stafford Loan Requirements

• You must have submitted a FAFSA.
• For subsidized Stafford Loans, you must have financial need as determined by your school.
• You must be a U.S. citizen, permanent resident, or eligible non-citizen.
• You must be enrolled at least half-time.
• You must not be in default on any education loan or owe a refund on an education grant.

Below, we have highlighted the specific steps for completing the Stafford Loan process:

File a FAFSA

The FAFSA is the first and most important step towards getting a Stafford Loan; you can't get a loan without filing yours, and it's also free. You can file your FAFSA electronically at FAFSA Online. Be sure to include the school's FAFSA code (or prospective schools, if you are a high school student) to ensure that the results are sent to your school's financial aid office.

Remember, the earlier you file your FAFSA, the more likely you are to obtain the full amount of financial aid for which you are eligible!

Receive and read your Student Aid Report and award letter.

Three to four weeks after filing your FAFSA, you'll receive, in the mail, a copy of your Student Aid Report, or SAR. A copy will have been sent to the school(s) of your choice. Approximately one to two weeks after you receive your copy of the SAR, look for a financial aid award letter from your school detailing how much aid you are eligible for and in what form that aid will take. You will need to indicate which financial aid you will accept (i.e., work study, loans, etc.) and return that information to your school's financial aid office.

Note: Returning the award letter for acceptances does not complete the process for applying for a Stafford Loan! You must still fill out a master promissory note!

Apply for the Federal Stafford Loan.

Once you have received and returned your award letter, if you have been awarded the Stafford Loan, you can apply online. This online application will allow you to retrieve a promissory note which you will need to sign and return to your school for certification.

Our free online application will walk you through the process of how to file your loan paperwork.

If you are not eligible for government student loans or you need additional funds to cover your tuition and expenses, you'll need to seek an alternative student loan, which is also called a private student loan.

How much can I borrow with the Stafford Loan

• Undergraduate Stafford Loan Limits - Click Here
• Graduate Stafford Loan Limits - Click Here

Tips for completing the Stafford Loan

• Be sure to print and sign the promissory note!
• Be sure to keep a copy for your records!
• Be sure to mail the application to the address specified in the online application!
• Remember that you will need to file a FAFSA and Stafford Loan application every year!

Manage any leftover funds

Once the lender has received the promissory note, funds will be made available to the school for disbursements. Schools set disbursement dates and apply your Stafford Loan proceeds directly to cost of tuition. Any money left over will be sent to you as a refund check or applied back towards the loan at your discretion.

What do I do next?

At this point, your Stafford Loan application is more or less done. Check with your financial aid officer in August to verify that they have received a certification request and have processed your application.

What if the amount you've been awarded in Stafford Loans isn't enough to cover the cost of education?

You have a few choices.

First and foremost, regardless of whether or not you were awarded a Stafford Loan, be on the hunt for scholarships. You can hunt for scholarships in three different ways:

• Use our free scholarship search service
• Our e-book - Scholarship Search Secrets, available to subscribers of the Financial Aid Podcast
• Create an account at ScholarshipPoints.com to register to win a scholarship!

While you're searching for scholarships, consider three other loan options:

Consider Alternative Student Loans - Act Education Loans

If your federal student aid report indicates that you do not meet the requirements for federal funding, or it falls short of what you need, consider applying for a private student loan. Learn more about Act Education Loans and GradLoans.com's Private Graduate Loans.

The Parent PLUS Loan – (Parent Loan for Undergraduate Students)

After you find out how much federal financial aid you are qualified for your parents may want to take out a PLUS loan on your behalf. PLUS Loans are credit-based loans that parents can borrower to help fill in any gaps between your cost of education and the federal need-based aid you have received. Parents may borrow the amount needed to fill the gap between the cost of your education and the federal student aid you have already received.

It is important to apply for the Stafford Loan first. Learn more about Parent PLUS Loans and apply online.

Perkins Student Loans - Perkins Education Loans.

A Federal Perkins Loan is a low-interest (5%) loan for both undergraduate and graduate students with financial need. Your school determines this need, and they will also be the official lender of the loan. The loan is made with government funds, and your school contributes a share. You must repay this loan to your school.

Build Student Credit.

Once school funding is complete, consider applying for a student credit card to build a good credit rating. You can do so at the Student Credit Card Applications from StudentPlatinum.com.

We encourage you to sign up for our monthly financial aid newsletter. It is filled with scholarship information and tips to get the most out of your education dollar. Sign up at: FinancialAidNews.com.

Consolidate when you Graduate

Student loan consolidation allows you to lower your monthly payment, lock in low rates and combine multiple payments into one. Consolidating your student loans improves your credit and can help you manage your financial situation. The Government Student Loan Consolidation Program allows you to consolidate Federal Stafford, PLUS, Perkins and Direct student loans.

Private student loan consolidation is available as well: Private Student Loan Consolidation Program.