Federal Stafford Student Loans - advantages and disadvantages of Federal Student Loan Consolidation

The main components of the federal stafford student loans are the two types of financing programs for post-secondary students. 

Stafford loans are under the administration of U.S. Department of Education and includes the William D. Ford Federal direct loan (Direct Loan) Program and the Federal Republic of Family Education Loan (FFEL) Program. 

Only students can apply for a Stafford loans by completing a FAFSA (free application for Federal Student Aid) and send to any school they want. Once the form is completed, the school decides financial eligibility. 

For direct student loans is the federal government lender but FFEL programs allow you to select the lender using a list provided by the school or a qualified lender. 

Under this program, the federal government guaranteed loan. 

The loan may be granted to (the federal government pays interest while you are at school) or unsubsidized (the interest will be included in your loan balance). 

If a student brings all the correct documents, so he / she can benefit from a subsidized stafford loan. 

Every year in school affects the federal Stafford loan limits and also the subsidized / unsubsidized funding. Below you can find the current regulations that may affect your loan: 

Pros: 

- The credit check is not required because the federal government guarantees the loan. 

- Fixed interest rates are the lower interest rates on the market 

- Repayment plans offer very flexible terms. This means that you will make payment plan that suits you best, and also you can consolidate your other loans to a single and more affordable one. 

- The new student repayment is deferred. 

Cons: 

- Sometimes the loan limits are insufficient, especially given today's post-secondary education costs. 

- You have to submit a FAFSA (free application for Federal Student Aid). 

- You have to ask for Stafford loans each year and again this leads to more payments and loans that will affect your post-exam life. 

- You will only direct use of the funds because they are processed and collected only at school for your lab fees, books, teaching, etc. 

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