The Stafford Loan is a federal student loan that students receive while attending a qualified post-secondary institution.  When a student graduates, leaves school, or drops below the minimum half-time enrollment, he or she will have a six month “grace period” before repayments begin.  During this time, the student will receive repayment information and they’ll be notified of the first payment date.

There are many students that won't be able to pay back their Stafford Loan after graduation due to higher living expenses, loss of job, and many other unforeseen circumstances.  The federal government offers Stafford Loan Forgiveness Programs that relieves students of their obligations to pay back their Stafford Loan if they are unable to continue their monthly payments. 

 


The Teacher Loan Forgiveness Program is part of the federal government Stafford Loan Forgiveness Programs.  This program is intended to encourage individuals to enter and continue in the teaching profession. Under this program, individuals who teach full time for five consecutive, complete academic years in certain elementary and secondary schools that serve low-income families and meet other qualifications may be eligible for forgiveness of up to a combined total of $17,500 in principal and interest on their FFEL and/or Stafford Student loans.  As of August 14, 2008, eligible borrower may qualify for forgiveness if the borrower has provided qualifying teaching services at one or more locations that are operated by an educational service agency.

The Community Service Loan Forgiveness Program is another federal government Stafford Loan Forgiveness Program.  This program excludes from income any student loan amounts forgiven by non-profit, tax-exempt charitable or educational institutions for borrowers who take community service jobs that address unmet community needs. For example, a recent graduate who takes a low-paying job in an urban city school will not owe any additional income tax if, in recognition of this service, his or her college or another charity forgives a loan it made to him or her to help pay her college costs. This provision applies to loans forgiven after August 5, 1997.

If you are not a teacher or work for a non-profit organization, you may still qualify for the Stafford Loan Deferment or Forbearance Loan Program.  Under certain circumstances, such as a decline in income or higher living expenses, you may be able to hold all monthly payments without being penalized.  You won’t be charged interest for the subsidized Stafford Loan, but you will still be responsible to pay the interest for the Unsubsidized Stafford Loan during deferment.  



FederalStaffordStudentLoan.com / StaffordLoanInterestRate.com
StaffordLoanLimits.com / FederalUnsubsidizedStaffordLoan.com /
FederalStaffordLoanConsolidation.com / StaffordLoan.org