A Brief Overview of the Stafford Loan

school for barbering West Palm BeachThere is immense pressure on individuals to attend educational institutions after high school in the Untied States, but as you probably know, wishing to attend school and actually being able to attend an institution like a school for barbering West Palm Beach are two different things. The first problem that most people tend to run into is a lack of time which is perfectly understandable given the lack of time that we seem to have in today’s world. Even if the time issue is resolved however, we end up with the monumental task of paying for our education and if you want to learn barbering West Palm Beach, you will need to find the finances somewhere. Fortunately, there are a plethora of different student loans out there so long as you qualify, and the Stafford Loan is ready to assist you in your financial needs. Before you go any further with it however, what exactly is the Stafford loan? How does it work? How does it differ from other types of loans? It’s take a look!

What is the Stafford Loan?

First of all, the Stafford Loan is a student loan offered for aid in financing the education of those students who wish to enroll, or are enrolled in an accredited higher education institution such as a barbering school. The loan was introduce in 1965, as outline in Title IV of the Higher education Act of 1965. The greatest benefit of this loan is that the lender is actually guaranteed a full repayment if the student defaults.

Originally, the Stafford loan was referred to as the Federal Guaranteed Student Loan Program, but it was renamed to the Robert T. Stafford Student Loan Program, having been done so in honor of a senator named Robert Stafford who had done a considerable amount of work in the area of higher education.

Lower Interest Rates

These loans are offered at a considerably lower interest rate than most others simply because they are guaranteed for repayment by the US government. While this is great news for most students, it does mean that there are very stiff requirements for the borrowing of Stafford loans:

  • Students Must Complete a FAFSA Form
  • Student must Meet All Requirements Stemming from FASFA Application
  • Loans are Available through United States Department of Education
  • No Payments Expected while Student is Enrolled (Half Time or Full Time)
  • Payment is Deferred For Six Months after Completing or Withdrawing

Students trying to enroll in a school for nail tech or wishing to train to be a barber west palm beach will generally expect to receive a subsidized loan, but it should be noted that there are some unsubsidized Stafford Loans, and students will be responsible for all accumulated interest throughout their enrollment in school. Keep in mind that while interest may be deferred during enrollment, interest that is upaid will be added to the loan principal.

Budget Control Act of 2011

In 2011, this act eliminated subsidized Stafford loans for both graduate and professional students, though it should be noted that these students are still able to obtain unsubsidized Stafford loans. The first question you are probably going to have, especially if you are forced to look into an unsubsidized loan, is how much you are going to pay, though to be perfectly honest, the interest rates will vary, and are determined mostly by the date in which you obtained the loan in question.

Standard Rates

Unlike many loans, one thing that students will find to be pleasing, especially if they are already struggling to pay for cosmetology school is that their ‘risk’ factor does not determine the rate of interest. With many other loans, your rate can go up or down depending upon how much of a risk you are to the company in question. With this, however, all students are treated equal. There is however such a thing as a variable rate loan with the rates set annually. As of 2006, all such loans are issued with a fixed interest rate, that rate being set at 6.80% for unsubsidized loans, and 3.40% for subsidized loans.

Getting into a barbering school West Palm Beach does not need to be difficult, and you do not need to find yourself struggling to come up with the funding. You can get the job done and get into school rather easily so long as you are willing to spend the time researching the loan requirements and filling out the applications. With the new laws in place, it has never been easier.