The Department of Education Stafford Loan

August 25, 2007 – 1:15 am

The other day, I had the opportunity to chat with my friend regarding student loans. You see, he has been complaining that he is bogged down by such loans and that repayment is taking a toll on his financial health.

As for me, my only point of discontentment comes from the fact that I wished knew about college loans earlier so that I don’t have to drop out from college.

I checked out the department of education Stafford loan just now and compare to the loans that my friends took out that come with a high interest rate, Stafford college loan is a government guaranteed student loan that has very low interest rates.

I bet many people do not know that there are two types of Stafford college loans. One is subsidized and the other is unsubsidized. Subsidized in this context means that the government pays interest on the loan until the borrower graduates from college and then he takes over the repayment. On the other hand, unsubsidized loan means that one has to start paying the interest on the loan as soon as the loan is approved.

In any case, I believe it is of utmost important to make sure one compares all the different student loans first.