Advantages and disadvantages of Stanford student loan consolidations
There are two main types of financing program which form the main component of federal Stratford student loan.
Stafford loans comes under the administration of US department of education and has two programs lie William D. Ford Federal Direct loan and Federal Family Education Loan(FFEL)
The only means for applying for Stafford loan is through FAFSA(fee application for federal student aid) .These association sends to which ever school they want and when it gets approved they decide how much financial help they can provide.
Federal government acts as lender for the direct student loan. FFEL programs allow you to chose the lender from the list provided by the school or a qualified lender.
Federal government acts as lender under the program for the loan. The loan can be of two types either subsidized or unsubsidized . Subsidize loans mean the government paid the interest when you are in the school and unsubsidized loan means loan would include the interest rate within the balance..
A student could easily get the subsidized loan when he/she brings the correct documents. There is influenced of Stafford loan and its types every year.
The following is the rules and regulation which will influence your loan:
● Advantages of the loan
● Federal governments take the grantee of the loan so there is no credit check required.
● The interest rate is lowered than the market rate. The interest rate remains fixed through out the loan.
● They have very flexible payment option. You can choose you own repayment option which suits you the best and consolidate your loan into one single loan.
● Repayments deferred during the enrollments in the school.
● Disadvantages of the loan
● The amount of loan is not sufficient sometimes for the post secondary education.
● FAFSA is compulsory.
● You have to apply for Stafford loan every year and this multiple payment may affect the post graduation life.
● They are processed and directed by the school for your lab, library, books , tuition etc so you will only going to use the fund directly or indirectly.
