A subsidized stafford loan is the best, first choice for students looking to borrow money for education.
Benefits:

• Fixed interest rate
• No payments while in school at least half-time

What are the benefits of a subsidized Stafford loan?

• Low fixed interest rate, as low as 5.60%
• No payments while enrolled in school or in deferment
• No interest while enrolled in school or in deferment
• Acceptance not based on credit

Who is eligible for a subsidized stafford loan?

In order to be eligible for the subsidized Stafford loan, you must meet the following qualifications:

• US Citizen or eligible non-citizen
• Enrolled half-time or more in an accredited academic program
• Have completed the FAFSA
• Have completed high school or equivalent (e.g. GED)
• Not in default or delinquent on any existing federal loan

Once you complete the FAFSA and receive the results, the Department of Education and your school will determine your final eligibility for the subsidized Stafford loan and what amount you may borrow, if any.

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All students are expected to contribute towards the cost of their college education. How much you and your family will be expected to contribute depends on your financial situation—and is what is referred to as your Expected Family Contribution or EFC.

The Free Application for Federal Student Aid (FAFSA) is the form used by the U.S. Department of Education to determine your Expected Family Contribution (EFC) by conducting a “need analysis” based on financial information, such as income, assets and other household information, which you (and your parents if you are a dependent student) will be asked to provide. The form is submitted to, and processed by, a federal processor contracted by the U.S. Department of Education (ED), and the results are electronically transmitted to the financial aid offices of the schools that you list on your application.

FAFSA is the application used by nearly all colleges and universities to determine eligibility for federal, state, and college-sponsored financial aid, including grants, educational loans, and work-study programs.
Copied from http://www.fafsa.com/Forms/Ajax/fafsa/what-is-fafsa.aspx

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Verification Procedures
A student’s Free Application for Federal Student Aid may be selected for a random review either by the Federal Processor or by the Director of Financial Aid for “Verification.”

If a student is selected, he/she will have to provide the following.

• A copy of the student’s Federal Income Tax Return or a letter indicating that he/ she was not required to file a Return
• Verification of any untaxed income received by the student
• Verification of the student’s permanent residency status (if applicable)
• Verification of enrollment of any household members who are enrolled at least half-time in other secondary educational institutions (if applicable)
• Any additional documentation required to verify eligibility and complete your application for federal aid. The Financial Aid Office will notify the students as to what additional documents will be needed. This notification will include deadlines for completing such actions and all required correction procedures. The student will be notified if his/her award changes as a result of the verification, and the time frame of this notification.

The deadline for completing the verification process will be noted on the letter sent to the student. This notice will inform the student of the verification requirement and will include the Verification Worksheet to be completed and returned to the Financial Aid Office. Federal aid will NOT be awarded until this process is complete.

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