Subsidized and Unsubsidized Loans Federal Student Aid Stafford loans interest

Summary of Article

Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. The U.S. Department of Education offers eligible students at participating schools Direct Subsidized Loans and Direct Unsubsidized Loans. (Some people refer to these loans as Stafford Loans or Direct Stafford Loans.)

What’s the difference between Direct Subsidized Loans and Direct Unsubsidized Loans
How much can I borrow
Am I eligible for a Direct Subsidized Loan or a Direct Unsubsidized Loan
How do I apply for a loan
What are the current interest rates
Is there a time limit on how long I can receive loans
Other than interest, is there a charge for this loan
What additional steps must I take to receive my loan
How will I receive my loan
Who will contact me after I receive my loan
When do I have to pay back my loan
What types of loan repayment plans are available
What if I have trouble repaying my loan
Can I cancel a loan if I decide that I don’t need it or if I need less than the amount offered
Can my loan ever be forgiven or discharged
Where can I find information about the student loans I’ve received

What’s the difference between Direct Subsidized Loans and Direct Unsubsidized Loans

In short, Direct Subsidized Loans have slightly better terms to help out students with financial need.

Here’s a quick overview of Direct Subsidized Loans:

If you are a dependent student whose parents are ineligible for a Direct PLUS Loan, you may be able to receive additional Direct Unsubsidized Loan funds.

The following chart shows the annual and aggregate limits for subsidized and unsubsidized loans.

Loans first disbursed prior to Oct. 1, 2017, have different loan fees.

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What additional steps must I take to receive my loan

If your financial aid package includes federal student loans, your school will tell you how to accept the loan. 

If it is your first time receiving a Direct Loan, you will be required to

Contact the financial aid office at the school you are planning to attend for details regarding the process for receiving a loan at your school.

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How will I receive my loan

The school will first apply your loan funds to your school account to pay for tuition, fees, room and board, and other school charges. If any additional loan funds remain, they will be returned to you. All loan funds must be used for your education expenses. Learn more about the process of receiving federal student aid.

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Who will contact me after I receive my loan

When you receive your Direct Loan, you will be contacted by your loan servicer (you repay your loan to the loan servicer). Your loan servicer will provide regular updates on the status of your Direct Loan, and any additional Direct Loans that you receive.

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When do I have to pay back my loan

After you graduate, leave school, or drop below half-time enrollment, you will have a six-month grace period before you are required to begin repayment. During this period, you'll receive repayment information from your loan servicer, and you'll be notified of your first payment due date. Payments are usually due monthly. Learn more about repaying your loan.

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What types of loan repayment plans are available

There are several repayment options available that are designed to meet the individual needs of borrowers. Your loan servicer can help you understand which repayment options are available to you. Generally, you’ll have 10 to 25 years to repay your loan, depending on the repayment plan that you choose. Learn more about your repayment options.

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What if I have trouble repaying my loan

If you are unable to make your scheduled loan payments, contact your loan servicer immediately. Your loan servicer can help you understand your options for keeping your loan in good standing. For example, you may wish to change your repayment plan to lower your monthly payment or request a deferment or forbearance that allows you to temporarily stop or lower the payments on your loan. Learn more about deferment or forbearance options.

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Can I cancel a loan if I decide that I don't need it or if I need less than the amount offered

Yes. Before your loan money is disbursed, you may cancel all or part of your loan at any time by notifying your school. After your loan is disbursed, you may cancel all or part of the loan within certain time frames. Your promissory note and additional information you receive from your school will explain the procedures and time frames for canceling your loan.

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Can my loan ever be forgiven or discharged

Under certain conditions, you may be eligible to have all or part of your loan discharged or forgiven (canceled). Find out about loan cancellation, discharge, or forgiveness. 

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Where can I find information about the student loans I’ve received

Visit "My Federal Student Aid" to view information about all of the federal student loans and other financial aid you have received and to find contact information for the loan servicer for your loans loan qualifier calculator

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Everything You Need to Know About Federal Stafford Loans .

Home > Financial Aid > Student Loans > Stafford Loans

The Federal Stafford Loan is the most popular low-interest federal loan. Stafford loans are for undergraduate and graduate students. The loan is insured by the federal government and offers flexible repayment options. Schools that participate in the William D. Ford Federal Direct Loan (Direct Loan) Program offer Stafford Loans.

There are two types of Federal Stafford Loans: subsidized and unsubsidized. Depending on household income, a student can be eligible for one or both varieties of student loans. The school specifies for which loans the student is eligible. Due to rates and repayment policy, Stafford Loans are the second thing a student should pursue, after conducting a scholarship search. If you aren't able to completely fund your college education with scholarships, the Stafford is the first loan option you should consider.

For more information on Federal Stafford Loans, visit www.studentaid.ed.gov suntrust auto loan payment

Federal Stafford Loans - Edvisors

Any student loan is a serious undertaking and should not be entered into lightly. You are agreeing to accept financial aid for your college tuition under contract to repay said loan in accordance with the provisions established by the loan officer. No loan is perfect, but the Federal Stafford Loan comes pretty close. Stafford Loans are the most common form of Federal financial assistance to students seeking to further their secondary education.

To qualify for a subsidized Stafford Loan student must meet the income requirements for need based aid.

Applying for a Stafford Loan

You must complete a FAFSA to qualify for any type of Stafford Loan. Students are notified if they are approved for need-based subsidized Stafford Loan funds. You are free to apply for unsubsidized Stafford Loan funds over and above any subsidized funds for which you've been approved.

Once you choose a student loan lender you will complete the Master Promissory Note for the Stafford Loan. This document details all the fine print of the loan, including your repayment responsibilities and terms.

Repayment of Stafford Loans

For both subsidized and unsubsidized Stafford Loans you have a standard 6-month grace period before you must begin repayment. During this time you are given information on repayment and reminded of loan terms and details of your payment schedule.

If at any time you have problems repaying a Federal student loan, you may apply for a Special Direct Consolidation Loan. Special Direct Consolidation Loans are designed to help borrowers manage their debt by placing all of their loans with one lender and reducing their payments to one manageable monthly bill.

Stafford Loans are the most common and most affordable student loans you can find in today's lending market. Government regulation makes these loans safe as well as dependable and help to give students from all walks of life the opportunity to realize their potential by attending college of university who qualifies for a fha loan

Stafford loans interest

There are private student loans for undergraduates, graduates, students pursuing certificates, dental, medical, and health professions students, as well as loans for graduates studying for the bar exam, or relocating for medical or dental residencies. There are also parent loans, taken out by a parent, relative, or another creditworthy individual (not the student) that can help you pay for college.

Private student loans are issued by a bank or financial institution, (as opposed to federal student loans, which are offered by the government).

What a private student loan can be used for

Private student loans—as well as federal student loans—should be used to pay for your education expenses:

Our private student loan application process only takes about 15 minutes to receive a credit result.

Understand the student loan application process

How much should you borrow

In terms of how much you should take out for college, borrow only what you think you can afford to pay back later. Think about your future career and how much you may make in your chosen field. The College Board® suggests that your monthly payments should be no more than 10 – 15% of your starting monthly salary. To help estimate your future income potential, you can visit the US Department of Labor at bls.gov.

The amount of money you can receive from a private student loan varies by lender. If your lender requires “school certification,” your school verifies your enrollment and ensures that you’re not borrowing more than the cost of attendance (including your federal student loans, scholarships, and grants).

The role of credit in private student loans

Private student loans are credit-based. That means that a lender will look at your history of borrowing money and paying it back. Federal student loans, on the other hand, are generally based on financial situation and federal guidelines rather than credit. (Note: The Federal Parent PLUS Loan is credit-based.)

If you don’t have a credit history, you’ll need a cosigner. A cosigner can be a parent, relative, or any other creditworthy individual. Their good credit history can help you get a loan (and sometimes, a better interest rate).

Along with you, a cosigner accepts responsibility for repaying your private student loan. If you keep your loan in good standing, making on-time payments, it can be a great way to build your own credit. If you fall behind or don’t pay back your loan, your cosigner’s credit can suffer if they don’t make payments.

What happens after applying for a private student loan

After you apply for our private student loans, you’ll typically get a credit approval within 15 minutes of applying. You’ll also get notices to review, accept, and e-sign your loan terms.

Your school will have to certify your loan amount before it can be disbursed (paid to the school). Then you’ll get a Final Disclosure spelling out the details.

You have the right to cancel your loan before it’s disbursed (sent) to your school.

Learn what happens after your loan is approved

Starting with your first semester, it’ll be helpful to keep track of both your federal and private student loans. Here are some tips for managing them:

  1. You need to apply for a new loan every year you’re in college.
  2. You must be enrolled in school at least half-time.
  3. Interest accrues on your student loan throughout the life of the loan. Making in-school payments can lower the total cost of your loan.
  4. Once you leave school, whether you graduate or not, you’ll generally have a grace period of six months before you begin to make principal and interest payments.
  5. As you continue to take out federal or private student loans throughout your years in college, keep a list of the lenders, how much you’re borrowing—and don’t forget to borrow responsibly obama school loan forgiveness

Learn about managing your student loans

FinAid Loans Historical Interest Rates

Private Student Loans from a Leader in Student Lending

Depending on the level of degree you are studying for, borrowing limits vary. There are lifetime aggregate limits to the total amounts you may borrow based on degree level. The ‘Total Citizens Bank student loan debt’ column shows the maximum you can borrow from Citizens Bank, while the ‘Total private and federal student loan debt’ column indicates the maximum amount you may borrow with federal and private student loans combined.

Our private student loan gives you the option of paying immediately, making interest-only payments while in school, or deferring payments until you’re no longer enrolled. (Please note, interest will accrue during any periods of deferment home loan prequalification calculator)

Choose the time period to repay your loan:

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