Am I eligible for a Federal Stafford Loan?
The financial aid offices at the schools to which you are applying for admission and financial assistance review the results of your FAFSA and determine your loan eligibility. If you are eligible for a FFEL Stafford Loan, you must complete and sign a master promissory note (MPN). After the master promissory note is completed, make a copy for your records and mail the original to the address your Credit Union has provided.
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The Subsidized Federal Stafford Loan is available to students who have financial need. The federal government pays the interest on the subsidized loan while the borrower is enrolled in college at least half-time and for six months after enrollment stops. At the end of the six-month period, the borrower becomes responsible for the loan interest and payment.
An unsubsidized Federal Stafford Loan is an option for students who do not demonstrate financial need. The student borrower is responsible for the interest at all times. Borrowers can choose to pay the interest while they are enrolled or have it added to the loan principal. Delaying the interest payment by adding to principal, however, will increase the cost of the loan. Payment of the principal begins six months after the student is no longer enrolled.
