Stafford Federal Loan - When to Apply

Stafford Federal Loan for college is well worth the effort to apply for. But when should you apply?

Generally, a student must be enrolled or be accepted forenrollment in a degree or certificate program to receive FSA funds.

However, there are three exceptions that apply to Stafford and PLUS loans. These exceptions are

• Undergraduate preparatory work.
  A student may apply for a Stafford Federal Loan for up to 12 months of coursework taken in a single consecutive period as long as the school has documented that the coursework is necessary in order for the student to enroll in anundergraduate degree or certificate program. The students may borrow at the first-year undergraduate loan level, and the loan limit is not prorated if the coursework is less than an academic year.

• Coursework required for teacher certification.
  A student with a baccalaureate degree who is taking coursework necessary for a credential or teacher certification at the elementary or secondary level may apply for a Stafford Loan. Once again, the school’s records must indicate that the courses taken are required by the state where the student will be teaching. Such students may borrow at the fifth-year undergraduate loan level, and the loan limit is not prorated if the program is less than an academic year.
• Graduate/professional preparatory work.
  A student may also apply for a Stafford Loan for up to 12 months of coursework taken in a single consecutive 12-month period if the school has documented that the coursework is necessary in order for the student to enroll in a graduate or professional program. The students may borrow at the fifth-year undergraduate loan level, and the loan limit is not prorated if the program is less than an academic year.