A Federal Direct Unsubsidized Loan is not based on your financial need. Stafford Loans are the most common form of Federal financial assistance to students seeking to further their secondary education. A parent may borrow up to the total of the Estimated Cost of Attendance less resources and all other financial aid received by the student. Return to top Repayment Provisions You must start repaying on your subsidized Stafford loan six months after graduation, or after you drop below half-time enrollment. A significant portion of this financial aid will come in the form of Stafford loans. A Stafford Loan is a student loan offered to eligible students enrolled in accredited American institutions of higher education to help finance their education. Did this article help you?
Stafford Loan Interest Rates and Fees. All Stafford Loans originating prior to June 30, have a variable interest rate adjusted annually and capped at %cft-group.tk › Home › Financial Aid › Student Loans › Federal. Download Paper Loan Documents; Complete TEACH Grant Initial and Subsequent Counseling Log in to cft-group.tk with your verified FSA ID. LOG IN Create an FSA ID Natural Disasters. Find out your student loan repayment options here Complete a Consolidation Loan Application and Promissory Note; Use the Repayment Estimator;cft-group.tk The aggregate loan limits include any Subsidized Federal Stafford Loans or Unsubsidized Federal Stafford Loans you may have previously received under the Federal Family Education Loan (FFEL) Program. As a result of legislation that took effect July 1, , no further loans are being made under the FFEL cft-group.tk://cft-group.tk
What is the Stafford Loan?
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.
Interest rates do not vary with default risk: For variable rate loans, the rates are set annually using the price of the day Treasury bill on the last Monday of May, and become effective for the following year on July 1.
For fiscal year , the day Treasury bill auctioned on May 27, at 1. Loans issued before July 1, were adjusted to a rate of 3. Loans issued between July 1, and June 30, were adjusted to a rate of 2. As of July 1, , all Stafford Loans are issued with a fixed interest rate. For direct loans and most loan providers, the rate is currently set at 6. The bill links student loan rates to the Federal year Treasury rate, plus a small margin. If the interest is allowed to accumulate, the interest will be added to the principal amount of the loan and increase the amount to be repaid.
The origination fee for the Direct Unsubsidized Stafford Loans is 1. Parent Loans for Undergraduate Students Federal Direct Parent PLUS are federal loans that parents with good credit histories may borrow to help pay the educational expenses of an undergraduate student enrolled in at least 6 credit hours per semester. A parent may borrow up to the total of the Estimated Cost of Attendance less resources and all other financial aid received by the student.
The interest rate is a fixed interest rate of 7. The borrower cannot be 90 days or more delinquent on the repayment of any debt or the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of a Title IV debt during the last five years.
If credit is approved, loan funds will be disbursed. The funds will be applied to tuition, fees, and other university charges. Grad PLUS Loans are federal loans that graduate and professional students with good credit history may borrow to help pay educational expenses if you are enrolled in at least 6 credit hours per semester.
A student may borrow up to the total of the Estimated Cost of Attendance less resources and other financial aid. In addition, to be eligible for a Grad PLUS Loan, you must be enrolled at least 5 hours during the fall and spring semesters; at least 3 hours during the summer semester. You cannot be 90 days or more delinquent on the repayment of any debt or the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a Title IV debt during the last five years.
If a Grad PLUS disbursement generates a refund, the refunded amount will be deposited into your bank account. Authorizing direct deposit of refunds gives you the quickest access to your funds. A significant portion of this financial aid will come in the form of Stafford loans. You can take steps to reduce the cost of your education and to make up some of the difference with scholarships, program-specific financial aid, and private loans.
Read your official financial aid offers. Schools that accept you will send you official offers of financial aid. These packages will include both federal financial aid and any institutional aid that the school is awarding you. Your Stafford loans will be included in these offers. Note that Stafford loans are usually only one part of a larger financial aid package. You may also qualify for grants which are wonderful, since they do not need to be paid back , work-study opportunities, and other federal loans such as the Perkins loan.
Read the fine print. Resist the urge to simply accept all the aid you are offered without taking the time to understand all of the terms and conditions.
Accepting financial aid will mean that you are likely to graduate with a considerable amount of debt, which you may or may not be in a position to pay back.
Distinguish between subsidized and unsubsidized Stafford loans. Most students will receive a combination of Stafford loans: Subsidized Stafford loans are awarded based on financial need alone.
In other words, the interest will begin to accumulate only after you finish school. However, these loans are not as attractive as subsidized ones because the interest begins to accumulate immediately. Be aware of the limitations on Stafford loans. Stafford loans are not unlimited. Consider the benefits of Stafford loans. Taking on student loan debt can be stressful and scary, but if you must borrow to pay for college, Stafford loans are the best available way for you to do so.