Subsidized Federal Loans – Do You Qualify? Steps to Apply For Subsidized Government Loans

Many students have aspirations to attend graduate schools or college but do not possess enough income sources to afford their education. But one thing that they can surely afford is a subsidized federal loan. Subsidized federal loans are specially designed for students who do not have a strong financial back ground or means of income. The best part about this loan is that you do not have to pay any interest on this loan till the time you complete your course.Subsidized Federal Loans can be financed only by federal government and are meant for low income group students. If you have enrolled in a school that takes part in federal family education loan program and are not in default with any other education, then you are eligible for a subsidized federal loan. You must also be attending at least half time school when you apply for the loan.Here are the steps that need to be followed in order to apply for Subsidized Federal Loan:· The first most important step is to fill up FAFSA also known as free application for federal student aid and process the case. After some time you can check the status and see the amount of loan for which you are eligible. You can also make corrections in a processed FAFSA and review the changed results. One more thing to be kept in mind is that you have to apply for loan every year as federal student loans are not renewed automatically.· You school will now send an award letter mentioning your eligibility for loan. After you receive the award letter, you can apply for “Stafford loan”. The federal Stafford loan is relatively cheap and the interest rate is fixed.· You should also look for other federal student loans available in the market and apply. You should not be dependent on just one option. Try and search several options that are offered by the government and see for yourself what suits you the best.Subsidized loans are interest free till you complete your education and because they are offered on a real low rate of 6.8%, it is easy for students to repay the loan back.