My son fill out the free FASA application and was told that he maybe eligible for a Direct STAFFORD loan estimate of $7,500.00. Our EFC was 20804. I am not sure what happens next. Do we wait for the University to process the paperwork for the Stafford Loan or should we initiate the paperwork? Is there a guarantee approval for a Stafford Loan at $7,500.00? What is the advantage of a Federal Student Loan vs Private Student Loan?
We just applied for a private student loan with Sallie Mae, however, they offer us a loan with a 10% variable interest rate, which I feel is not a good deal. We do not want to accept their terms until we look at other alternatives.
Any advice you can provide us will be greatly appreciated.