Just to make this more complicated, there are two types of Stafford loans available to students
For those who demonstrate sufficient financial need, the government will pay the interest on “subsidized” Stafford loans for students while they are enrolled in college. Otherwise, loans accumulate interest while a student is in school, and the student may either pay that interest as it comes due or let it be added to the principal balance.
Where to begin? With a first step that unfortunately is not easy — filling out the Free Application for Federal Student Aid, or FAFSA. There was talk in Congress earlier this year of simplifying this form, which is long and detailed, but no changes have been approved by lawmakers yet. (more…)
