MarylandMentor - Financial Aid

Four Steps to Financial Aid

<<< DIRECT AND FEDERAL STAFFORD LOANS

Federal Stafford Loans

How do you apply for a Federal Stafford Loan?
First, you must complete the Free Application for Federal Student Aid (FAFSA) or Renewal FAFSA. After your FAFSA is processed, your school will review the results and will inform you about your general loan eligibility.

Next, you must complete the Federal Stafford Loan Application and Promissory Note, available from your school, a lender, or your state guaranty agency.

Finally, you must take your completed Federal Stafford Loan Application and Promissory Note to the school you plan to attend. After the school completes its portion of the application, you or the school on your behalf must send the application to a lender for evaluation.

How can you find a lender?
For more information about borrowing, call the Federal Student Aid Information Center's toll-free number, 800 4-FED-AID or 800 433-3243.

How do you pay back your Federal Stafford Loan?
There are four repayment plans available to borrowers of Federal Stafford Loans. The repayment plans will be explained in more detail during entrance and exit counseling sessions at your school. Aspects of these repayment plans will vary by lender. Check with the lender for complete information.

You may choose one of the following repayment plans:

A Standard Repayment Plan requires you to pay a fixed amount each month — at least $50 or the interest that has accrued.
A Graduated Repayment Plan, begins with lower payments which increases over time. Each of your payments must at least equal the interest acrued on the loan between scheduled payments.
An Income-Sensitive Repayment Plan bases your monthly payment on your yearly income and your loan amount. As your income rises or falls, so do your payments. No single required payment may be more than three times greater than any other of your required payments. Each of your payments must at least equal the interest accrued on the loan between scheduled payments.

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