FFEL Stafford Loans

How do I apply for a FFEL Stafford Loan?
First, you must complete the 2002-2003 FAFSA or Renewal FAFSA (see page 9). 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 promissory note.* Remember, the promissory note is a legal document requiring you to repay the loan. Read it carefully before you sign.

How do I pay back my FFEL Stafford Loan?
There are three repayment plans that are available to borrowers of FFEL Stafford Loans. The repayment plans will be explained in more detail during entrance and exit counseling sessions provided by your school. The chart 17 shows examples of estimated monthly payments for various loan amounts under each of the plans. Aspects of these repayment plans will vary by lender. Check with your lender for complete information. In some cases it may be beneficial for you to consolidate one or more of your FFEL Stafford Loans into a
Consolidation Loan. See page 21 for more information on loan consolidation.

You may choose one of the following repayment plans.

• The Standard Repayment Plan requires you to pay a fixed amount each month-at least $50.
• Under a Graduated Repayment Plan, your payments will be lower at first and then increase over time. Each of your payments must at least equal the interest accrued on the loan between 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. Each of your payments must at least equal the interest accrued on the loan between scheduled payments.
• The Extended Repayment Plan is available to new FFEL borrowers who received their first loan on or after October 7, 1998, and who have FFELs totaling more than $30,000. Under the Extended Repayment Plan, your payments will be fixed or graduated (lower at first and then increased over time) over a period of up to 25 years. You are allowed to pick a different repayment plan once a year. Your repayment plan will not change unless you request a change. If you do not choose a repayment plan when you first begin repayment, you will repay under the Standard Repayment Plan.

Go on to Direct Stafford Loans Page 18 - PLUS Loans Page 20 - Direct PLUS Loans Page 21