Alabama - Apply for Stafford Loans

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Procedure

Apply Online

1. To Apply for Stafford Loans in Alabama, the applicant has to make the application through online by completing the FAFSA form by login to link
2. The applicant has to click “Start here” menu, and select either he/she is a student, parent or a preparer.
3. After selecting, the applicant has to login in with their FSA id and password if the applicant doesn’t have an account, he/she can create a new FSA id by clicking on Create FSA id.
4. Fill out student’s personal information such as Name, Date of Birth, etc.
5. Add list of schools the applicant considering. Applicant can add 10 schools at a time.
6. Make sure the applicant has attached all the required documents that are mentioned in the “Required Documents” section of this page.
7. Next section is regarding the dependency status. If the applicant is an independent student, they can skip the parent’s information in the section. If the applicant is a dependent student fill out parent information in the section, then provide financial information.
8. After that sign & submit FAFSA form. For this on the sign and submit page select “other options to sign and submit”. and select “Print a signature page” and print the application form for your reference.
9. The applicant has to pay 4% of the loan as a fee.
10. The authority will review the application and contact the applicant within 30 days.
11. If the application is processed, applicant will receive a copy of Student Aid report (SAR) and SAR is also sent to the colleges that are listed in FAFSA.
12. Applicant should contact the financial aid office at the college to find out anything is needed additionally.
13. If the loan has been accepted at a college or career school that the applicant listed on his/her FAFSA form, the school will calculate their aid and send an electronic or paper aid offer, sometimes called an award letter, telling the applicant how much aid they are eligible for at the school.

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Required Documents

• Application form
• If applicant have driver’s license, number is required
• If the applicant is not a U.S citizen alien registration number is needed
• Federal tax information or tax returns including W-2 information, for the applicant (and spouse if married) and if the applicant is dependent student details of parents.
• Records of untaxed income of the applicant like child support received, non-educational benefits
• Information regarding cash, savings account, investments.

Office Locations & Contacts

FEDERAL STUDENT AID DEPARTMENT
Federal Student Aid Information Centre (FSAIC)
Tel: 1-800-433-3243
Contact details link
Support centre link
Federal student aid regional offices link
Loan service centres link

Note: Each and every school and universities have federal student aid the applicant can approach there to get more information.

Eligibility

• Applicant should have financial need.
• The borrower must be enrolled for at least a half-time basis
• The borrower must be a U.S. citizen, permanent resident or eligible non-citizen
• For Federal Parent PLUS loans, the student must satisfy the citizenship criteria.
• Eligibility for Federal Stafford loans does not depend on the borrower’s credit.
• The borrower of a Federal PLUS loan must have a good credit history.

Fees

• The applicant has to pay 4% of the loan as a fee.

Validity

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever

Documents to Use

Please attach documents that can be used by people. E.g. links

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

• The processing to apply for private student loan takes up to 30 days

Related Videos

Videos explaining the procedure or to fill the applications.
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Instructions

• Borrow only what you need for school related expense.
• Applicant should understand the terms of loan and keep copies of loan documents.
• Make repayment without delay.
• Maintain a relation with loan service.

Required Information

• Student’s information
  • Name & address
  • E-mail address
  • Date of birth
  • Place of birth
  • Citizenship
  • Visa type
  • Expected starting date of study
  • List of colleges & Universities
  • Marital status
• Parents information
  • Current marital status
  • Name & Address
  • Age
  • Occupation
  • List of family members & Education information
• Financial information (Income from all sources)
• Asset information (Money value of assets)
• Expenses
• Expected support for educational expenses
• Student’s signature
• Parents signature

Need for the Document

• A Stafford Loan was a student loan offered from the United States Department of Education to eligible students enrolled in accredited American institutions of higher education to help finance their education.

Information which might help

Guidelines link

• Max Loan Length - 30 years, depending upon amount borrowed and repayment plan chosen
• Interest Rate - Variable, does not exceed 8.25%
• Max Loan Amount - up to $20,500 annually
• Payment Frequency - Monthly
• Prepayment Penalties - None

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

link

Others

More information which might help people.