Unsubsidized: Any students can borrow, regardless of financial need. Subsidized: Annual loan limits vary, but they are typically lower than unsubsidized loan limits. Unsubsidized: Annual loan limits vary but are typically higher than subsidized loan limits. Subsidized and unsubsidized: 1. Subsidized: The fixed annual percentage rate is 3.
Unsubsidized: The fixed APR is 3. These rates apply to loans disbursed on or after July 1, , through June 30, Subsidized: Interest is paid by the Education Department while you're enrolled at least half time in college.
Unsubsidized: Interest begins accruing as soon as the loan is disbursed, including while students are enrolled in school. Subsidized: No payments are due in the first six months after you leave school.
The Education Department will continue to pay interest during this time. Unsubsidized: Loan payments are not due in the first six months after you leave school, but interest will continue to build.
Subsidized: Interest is paid by the Education Department during deferment, which lets you temporarily pause payments. Unsubsidized: Interest continues to collect during deferment and will be added to your principal loan amount. Taking on too much student loan debt may make repayment difficult after you graduate.
Borrow federal loans first: Private student loans often carry higher interest rates and require a co-signer if a student borrower has no credit history.
However, depending upon the term to which you would like the funds to apply, priority processing and final deadlines do apply. For more information, please visit our Federal Loan Deadlines page. Effective with the academic year, it is strongly encouraged that you complete the federal Annual Student Loan Acknowledgement. The Acknowledgement will inform you of your total loan borrowing to date if any and assist with planning for future borrowing by offering information about estimated monthly payments when repaying the loans.
The Annual Student Loan Acknowledgement will be federally required as of the academic year. It is best to make the adjustments online or submit the form to our office for processing well before the funds are set to disburse to your billing account in order to avoid complications with the return of these funds. Federal Direct Subsidized Stafford Loans , which, as of July 1, are available only to undergraduate students, are:.
Federal Stafford Direct Loan borrowers must complete both an Entrance Counseling session and a Master Promissory Note before these loans can be disbursed. In the event the Student Financial Services Center has notified the student of needing additional documentation, this can also prevent the loans from being disbursed until they have been received and processed.
After a loan has been disbursed, the Federal Department of Education will assign it to one of their loan servicers. Students will receive a notice in the mail to notify them of their servicer's contact information. The loan servicer will be responsible for collecting payments and processing deferments and forbearances on the student's loans. Students can access their loan history and their loan servicer's contact information by calling Federal Student Aid Information Center at Find out whether you're eligible for a Federal Pell Grant.
This is required before your school can process the loan application and disburse loan funds. Be sure you understand the loan repayment terms. The interest rate on the Federal Direct Subsidized Stafford Loan depends on when you took out the loan:. Undergraduate students: If the first disbursement of your subsidized loan is between July 1, and June 30, , the interest rate on your loan is fixed at 3. The federal government will pay or subsidize the interest on the loan while you are enrolled on at least a half-time basis.
In most cases, you must begin repaying the loan six months after you leave school or drop below half-time status. Typically, you have up to 10 years to complete repayment. The amount of your payment depends on the size of your debt. Under certain conditions you may defer postpone payments for up to three years. Ask your financial aid administrator or read your promissory note to obtain information about deferring payment.
Direct Unsubsidized Stafford Loans For students without demonstrated financial need, an unsubsidized Federal Stafford Loan is available. The interest rate on Direct Unsubsidized Loans is fixed at 6. A fee of 1 percent is deducted from each disbursement. Borrowers of the Unsubsidized Stafford Loan are required to pay interest on the loan while in school.
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