Designed by the federal government to assist people with the education payment, Stafford student loans are widely appreciated across the United States and used by many whose studying in different fields like forensics or IT related optic fiber technology. Low income is the main criterion of eligibility for Stafford student loans. The payment deferment options, the low interest rate and the chance to consolidate education loans represent the main advantages of Stafford student loans. There are nevertheless limitations to this kind of loan and they are  first and foremost noticed in the amount of money provided. You won't be able to pay for your education from the loan alone and you'll need to find ways to supplement funds.

Fill in a First Aid for Students Agreement or FAFSA and based on it, you'll be able to access not only federal loans but grants and scholarships too. This additional sums of money could in fact provide the alternative financing sources when you lack the means to pay out of the pocket. You will start repaying your debt, six months after you graduate. This period during which no payment occurs, bears the name of grace period.

There are two categories of Stafford student loans, some subsidized and others unsubsidized. Based on demonstrated financial need, students can get all the interest for the loans paid by the government in the form of subsidized loans. If the loan is unsubsidized, the interest accrues during school enrollment and is added to the initial debt in the process known as capitalization.There is a 6.8% fixed rate establish in the government loan system. Even lower rates are possible with some other programs.

Perkins loans have a 5% interest rate and they are considered more advantageous than Stafford student loans. Nevertheless, we need to stress out once more that both these types of federal government loans are not enough to cover all the educational expenses particularly if we think of the number of degrees one may want to take: BA, MA and PhD. Therefore, other sources become necessary for financing either from personal income and savings or from study-work conditions. Some families go as far as making home equity loans when their children do not qualify for Stafford student loans.