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 Master Promissory Note to the school you plan to attend. Be certain you have turned in all the forms and information the campus financial aid office requires. After the school completes its portion of the application, you (or the institution on your behalf) must send the application to the guaranty agency for evaluation.
How can you find a lender?
To qualify for one of the very best borrower benefits (cost-reduction) programs in the country, you'll want to borrow from a Utah Higher Education Assistance Authority (UHEAA) partner lender.
How do you pay back your Federal Stafford Loan?
There are four repayment plans available to borrowers of Federal Stafford Loans if your first Federal Program Loan was disbursed on or after July 1, 1993. Three of the repayment plans require you to repay the loan within 10 years. 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, with which your payments will be lower at first and then increase over time. No scheduled payment may be more than three times greater than any other of your 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.
- An Extended Repayment Plan, of up to 25 years, is available if you are a new borrower on or after October 7, 1998, with outstanding loans totaling more than $30,000.
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