Federal Stafford Loan for Online MBA Students

The Federal Stafford Loan is one of the many options that students have when it comes to financing their education through federal funding. It is a popular option with many students and is often the first option for many average situations in typical studying circumstances. However, is the Federal Stafford Loan applicable for online education and can it be used for an online MBA program?

What is the Federal Stafford Loan in an Online MBA Environment?

A Stafford Loan by definition is a student loan that is offered to students in accredited institutions for the purpose of financing their education. It is backed by the United States government and guarantees a repayment to a lender if a student defaults. This is a particular advantage because students are offered a very low interest rate when compared to standard means of private loans, but it also means that there are strict eligibility requirements that students must follow.

Students are awarded these loans based on full or part time attendance in an accredited institution. During this time, no payments are expected on the loans and repayments can be deferred for up to six months based on the student’s attendance in school. Repayments must commence if a student either graduates, withdraws from a program, or has attendance that falls below what is regarded as part time study.

How Can I Get a Federal Stafford Loan for my Online MBA Program?

Students begin the application process for a Stafford Loan by completing a FAFSA, which is the Free Application for Federal Student Aid. It is available on a yearly basis for students to assess their eligibility for federal financing. In order to pass the FAFSA criteria, students must be citizens or have legal residence in the United States. They must also possess a valid social security number and have successfully graduated high school. Students must also have never used federal aid for the solicitation of drugs and mustn’t have defaulted on any previous loans in the past.

If eligible, students may complete the FAFSA application and will be offered federal aid based on their personal circumstances and eligibility for certain loans as governed by FAFSA. Most of the funding that is offered through FAFSA can be applied for online education; provided that the institution is accredited. This can be determined by consulting a student’s local accreditation board for further advice and guidance towards a properly accredited online MBA program.

Comments

One Response to “Federal Stafford Loan for Online MBA Students”
  1. I have always feel funny about getting a loan for online schooling, I always feel the need to converse with people when it comes to getting a loan.

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