Graduating undergraduate students with a one-semester loan may not be eligible to receive the maximum annual loan limit. Deferment of repayment continues for six months after the student leaves school by graduating, dropping below half-time enrollment, or withdrawing, referred to as the grace period. Stafford Student Loan program, in honor of U. Unsubsidized Stafford Loans currently have a fixed interest rate of 6. However, if the parent borrower is later approved for the PLUS loan, or another parent borrower is later approved, the dependent student will no longer be eligible for the additional Direct Unsubsidized Loan. To qualify for a subsidized Stafford Loan student must meet the income requirements for need based aid. First-time borrowers on or after July 1,cannot receive subsidized loans for more than percent of the published length of their degree program.
Federal Direct Stafford Loan
Direct Stafford Loans are student loans that must be repaid and are available to both undergraduate and graduate students.. First-year undergraduates are eligible for loans up to $5, Amounts increase for subsequent years of study, with higher amounts for graduate cft-group.tk://cft-group.tk Direct Unsubsidized Loans (sometimes called Unsubsidized Stafford Loans) are low-cost, fixed-rate federal student loans available to graduate students, not just undergraduate students. Direct Unsubsidized Loans are the most common — and among the lowest-cost — ways to pay for graduate school and professional cft-group.tk://cft-group.tk The $65, subsidized aggregate loan limit for graduate or professional students includes subsidized loans that a graduate or professional student may have received for periods of enrollment that began before July 1, , or for prior undergraduate cft-group.tk://cft-group.tk
What is the Stafford Loan?
On the other hand, there are strict eligibility requirements and borrowing limits on Stafford Loans. No principal payments are expected on the loan while the student is in school enrolled at least half-time, referred to as in-school deferment. Deferment of repayment continues for six months after the student leaves school by graduating, dropping below half-time enrollment, or withdrawing, referred to as the grace period.
Stafford Loans are available both as subsidized and unsubsidized loans. Subsidized loans are offered to students based on demonstrated financial need. See Expected Family Contribution. The interest on subsidized loans is paid by the federal government while the student is in school and during authorized deferment. For unsubsidized Stafford Loans, students are responsible for all of the interest that accrues while the student is enrolled in school. The interest may be deferred throughout enrollment.
Unpaid interest that is deferred until after graduation is capitalized added to the loan principal. The Budget Control Act of eliminated subsidized Stafford loans for graduate and professional students effective July 1, Interest rates on Stafford Loans may vary and are determined based upon the date the loan was disbursed.
They may also vary by the education level undergraduate or graduate of the student. Stafford Loan Interest Rates and Fees All Stafford Loans originating prior to June 30, have a variable interest rate adjusted annually and capped at 8. Stafford Loans originating after July 1, and prior to July 1, have interest rates that are fixed at 6. Subsidized Stafford Loans for undergraduate students granted between July 1, and June 30, will have fixed interest rates of 3. For graduate and professional degree seeking students that fixed rate rises to 6.
Unsubsidized Stafford Loans currently have a fixed interest rate of 6. Stafford Loans, as guaranteed by the Federal government, remain one of the safest, most beneficial and lowest impact student loans available. Most students will qualify for some form of financial aid but until you submit your FAFSA you will never know what is available to you.
Stafford Loans are the most common financial aid available to students entering college and nearly every applicant is eligible for either a subsidized or unsubsidized loan package. To qualify for a subsidized Stafford Loan student must meet the income requirements for need based aid.
Students are notified if they are approved for need-based subsidized Stafford Loan funds. Unsubsidized loans are limited in the amount you can borrow per year and in total. Dependent students can borrow:. If the total amount borrowed over the course of your education reaches the aggregate loan limit, you cannot borrow additional Direct Stafford Loans. However, if you repay some of the loans to bring the outstanding balance below the aggregate limit, you can borrow again up to the loan limit.