I f you have to borrow loans to fund your education, plan your budget and borrow only what you need. The Federal Stafford Loan program is a low-cost loan with benefits such as an interest rate cap, flexible repayment options, deferments and forbearance features. Try to borrow the Stafford loan before turning to a higher cost private loan that may not provide all of these benefits.

Federal Loans

The Federal Family Education Loan Program (FFELP) includes several loan programs that are federally regulated and guaranteed. While lenders offer different incentive programs, the terms and conditions of FFELP loans are specified by the Department of Education.

1. Request a school catalog and financial aid information be sent to you to find out about each school’s required forms and deadline dates to apply for aid.
2. The Free Application for Federal Student Aid (FAFSA) is a mandatory application to determine your eligibility for federal aid programs, such as grants, work-study, and loans (Stafford and Perkins). In addition, the federal calculation used to determine your financial need and expected family contribution (EFC) may be used for other programs including state and/or institutional aid. Complete the FAFSA form either by paper copy or on the web at: www.fafsa.ed.gov as soon as possible after January 1st for the upcoming academic year (7/1 to 6/30).
3. Complete any additional forms or applications required by your school. Depending on the school you attend, there may be a CSS/Financial Aid Profile form or specific institutional form to collect information in addition to the FAFSA.
4. The school(s) you indicated on the FAFSA will receive the results of the calculations to determine your award package. A letter from the Financial Aid Office will be mailed to you, indicating the types and amounts of awards for which you are eligible. Promptly respond to any letters you receive from the school to prevent missing any deadlines, especially for grant and scholarship aid that you will not have to repay.
5. Keep copies of everything in a folder, such as forms you use to apply for aid, correspondence sent to you from the school, lenders, loan servicers, and anything related to your aid application process.

Applying for financial aid is not as complicated or intimidating as you may think. If you are uncertain about some of the terms or questions on the applications, call any Financial Aid Office or the U.S. Department of Education at (800) 433-3243. In addition, the following web sites from the Department of Education contain all of the information you need regarding the federal aid programs: The Student Guide Funding Your Education FAFSA on the Web Help in Completing the FAFSA Federal School Codes (to identify your school(s) on the FAFSA application)

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