It certainly will pay for you to understand the entire federal student loan application, especially after having received an award letter from a college and/or university that you have applied to for pursuing further studies. This award letter will state the kinds of financial aid packages that you can apply for and which can include grants and scholarships as well as work-study and even federal student loans.
Understand The Federal Student Loan Application Process
The federal student loan application process for a federal student loan such as the popular Federal Stafford Loan or even the PLUS loan can best be understood if you look at the instructions provided to you by your school or college. Even if your school does not send you a federal student loan application form you can still get your federal student loan by completing a Federal Stafford Loan application form which is available online and which you can download as a PDF file; or, you can request the school to mail to you a paper federal student loan application form which you can complete and return.
In case you happen to be attending a FFELP (Federal Family Education Loan Program) school then you need to first pick a lender before completing and submitting your federal student loan application form. To be eligible for a federal student loan requires that your school/college or university certifies the loan which they will only do after confirming your eligibility for the federal student loan. In addition, the educational institute will specify a period for repaying the loan and it will also set out the dates when the loan will be disbursed to you.
Once you have completed and sent in the federal student loan application the school/college or university that you are enrolled in will upon certifying the loan issue the money to the applicant-student on the appropriate dates.
The different kinds of federal student loan applications that you can make include the Stafford Loan Master Promissory Note, Parent PLUS Loan Application and Master Promissory Note, and the Grad PLUS Loan Application and Master Promissory Note.
In regard to federal student loan interest rates it pays to choose the Federal Stafford Loan because it offers the best rates and terms as well as benefits. Compared to other kinds of student loans the Stafford Loan is easily the best option including because interest rates are fixed and they can also be deferred while you are still studying in your school.