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Stafford, Perkins, Unsub...
What's the difference between these loans?
What's the difference between these loans?
Loanage
- Thread starter KwijiboOO
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Hello:
Information below is from:
http://www.ed.gov
http://www.dlservicer.ed.gov/
http://education.yahoo.com/college/financial_aid/
http://studentloan.citibank.com/
You can also go to this forum to get some more help:
http://forums.studentdoctor.net/forumdisplay.php?f=30
--------------------------------
Definition of terms:
Unsubsidized: The student borrower is responsible for the interest on the portion of the loan while in school, during periods of grace and deferment, as well as repayment.
Subsidized: The interest on the loan is paid by the government while the student borrower is in school and during periods of grace and deferment.
--------------------------------
Federal Stafford Loan:
The Federal Stafford Loan is a low interest, long-term loan for undergraduate and graduate students. It is regulated by the federal government who may pay a portion of the interest that accrues on the loan while the student is still attending school or during periods of grace or deferment. The Federal Stafford Loan can be either subsidized or unsubsidized; your eligibility for each will be defined in your award letter from the school.
Eligibility:
To be eligible for a Federal Stafford Loan, you must:
* Be enrolled as a full or half-time undergraduate, graduate or professional (i.e., health professional, law, etc.) student.
* Be a U.S. citizen, national or an eligible non-citizen.
* You must submit a FAFSA form. Eligibility is ultimately determined by the school based on criteria defined by the Federal government.
* Complete and sign a Federal Stafford Master Promissory Note.
Loan Terms: Annual loan maximum:
The amount of subsidized and unsubsidized Federal Stafford Loans combined cannot exceed the amounts defined below:
For Dependent Undergraduate Students: Year 1 - $2,625 Year 2 - $3,500 Years 3, 4 and 5 - $5,500
For Independent Undergraduate Students: Year 1 - $6,625 Year 2 - $7,500 Years 3, 4 and 5 - $10,500
For Graduate/Professional Students: Each Year - $18,500
For Eligible Health Professionals: Each Year - $38,500
NOTE: The amount of subsidized and unsubsidized Federal Stafford Loan funds is established by the school using the SAR, based on criteria defined by the Federal government.
Minimum loan amount:
There is no minimum loan amount.
Maximum lifetime amount per student:
* Dependent undergraduate - $23,000
* Independent undergraduate - $46,000
* Graduate - $138,000 (combined with any undergraduate loan limits)
* Eligible Health Professionals - $189,125
Interest Rate:
The interest rate is variable and adjusted annually on July 1. The rate is equal to the 91-Day T-bill plus 1.70% while the student is in-school and during periods of grace and deferment. During repayment, the rate is based on the 91-Day T-bill plus 2.30%. The interest rate is capped at 8.25%.
Repayment Terms:
You will have up to 10 years to repay your Federal Stafford Loans in addition to any periods of Deferment or Forbearance. An extended repayment term of 25 years is available for borrowers whose total federal loan debt exceeds $30,000. To qualify for the extender repayment plan, your first federal loan must have been disbursed on or after October 7th, 1998.
Postponement of Repayment:
Principal payments are not due while you are in school or during your six month grace period. However, interest is due on any unsubsidized Federal Stafford Loan funds while you are in school and during any periods of grace or deferment. The interest payments may be postponed. Any unpaid interest will be capitalized when repayment begins.
--------------------------------
Federal Perkins Loan:
A Federal Perkins Loan is a low interest loan available to undergraduate and graduate students with exceptional financial need. The loan is made using government funds with a share contributed by the school. The school is the lender and the student must repay this loan to the school.
How much can you borrow?
Typically, a student can borrow up to:
* $4,000 for each year of undergraduate study (the total amount you can borrow as an undergraduate student is $20,000 if you have completed two years of undergraduate work; otherwise, the total you can borrow is $8,000).
* $6,000 for each year of graduate or professional study (with an aggregate limit of $40,000, including any Federal Perkins Loans borrowed as an undergraduate).
Are there fees?
A Perkins Loan borrower is not charged any fees. The school will pay the student directly by check or credit the student's account at least two times during the academic year. The school must notify a student in writing whenever it credits their account with Perkins Loan funds.
Do you have to take this loan?
If a student does not want the Federal Perkins Loan, they may cancel all or a portion of the loan by informing the school within 14 days after the date that the school sends the notice or by the first day of the payment period, whichever is later. If Perkins Loan funds are distributed by check, a student may refuse the funds by not endorsing the check.
--------------------------------
- Rosanna
Information below is from:
http://www.ed.gov
http://www.dlservicer.ed.gov/
http://education.yahoo.com/college/financial_aid/
http://studentloan.citibank.com/
You can also go to this forum to get some more help:
http://forums.studentdoctor.net/forumdisplay.php?f=30
--------------------------------
Definition of terms:
Unsubsidized: The student borrower is responsible for the interest on the portion of the loan while in school, during periods of grace and deferment, as well as repayment.
Subsidized: The interest on the loan is paid by the government while the student borrower is in school and during periods of grace and deferment.
--------------------------------
Federal Stafford Loan:
The Federal Stafford Loan is a low interest, long-term loan for undergraduate and graduate students. It is regulated by the federal government who may pay a portion of the interest that accrues on the loan while the student is still attending school or during periods of grace or deferment. The Federal Stafford Loan can be either subsidized or unsubsidized; your eligibility for each will be defined in your award letter from the school.
Eligibility:
To be eligible for a Federal Stafford Loan, you must:
* Be enrolled as a full or half-time undergraduate, graduate or professional (i.e., health professional, law, etc.) student.
* Be a U.S. citizen, national or an eligible non-citizen.
* You must submit a FAFSA form. Eligibility is ultimately determined by the school based on criteria defined by the Federal government.
* Complete and sign a Federal Stafford Master Promissory Note.
Loan Terms: Annual loan maximum:
The amount of subsidized and unsubsidized Federal Stafford Loans combined cannot exceed the amounts defined below:
For Dependent Undergraduate Students: Year 1 - $2,625 Year 2 - $3,500 Years 3, 4 and 5 - $5,500
For Independent Undergraduate Students: Year 1 - $6,625 Year 2 - $7,500 Years 3, 4 and 5 - $10,500
For Graduate/Professional Students: Each Year - $18,500
For Eligible Health Professionals: Each Year - $38,500
NOTE: The amount of subsidized and unsubsidized Federal Stafford Loan funds is established by the school using the SAR, based on criteria defined by the Federal government.
Minimum loan amount:
There is no minimum loan amount.
Maximum lifetime amount per student:
* Dependent undergraduate - $23,000
* Independent undergraduate - $46,000
* Graduate - $138,000 (combined with any undergraduate loan limits)
* Eligible Health Professionals - $189,125
Interest Rate:
The interest rate is variable and adjusted annually on July 1. The rate is equal to the 91-Day T-bill plus 1.70% while the student is in-school and during periods of grace and deferment. During repayment, the rate is based on the 91-Day T-bill plus 2.30%. The interest rate is capped at 8.25%.
Repayment Terms:
You will have up to 10 years to repay your Federal Stafford Loans in addition to any periods of Deferment or Forbearance. An extended repayment term of 25 years is available for borrowers whose total federal loan debt exceeds $30,000. To qualify for the extender repayment plan, your first federal loan must have been disbursed on or after October 7th, 1998.
Postponement of Repayment:
Principal payments are not due while you are in school or during your six month grace period. However, interest is due on any unsubsidized Federal Stafford Loan funds while you are in school and during any periods of grace or deferment. The interest payments may be postponed. Any unpaid interest will be capitalized when repayment begins.
--------------------------------
Federal Perkins Loan:
A Federal Perkins Loan is a low interest loan available to undergraduate and graduate students with exceptional financial need. The loan is made using government funds with a share contributed by the school. The school is the lender and the student must repay this loan to the school.
How much can you borrow?
Typically, a student can borrow up to:
* $4,000 for each year of undergraduate study (the total amount you can borrow as an undergraduate student is $20,000 if you have completed two years of undergraduate work; otherwise, the total you can borrow is $8,000).
* $6,000 for each year of graduate or professional study (with an aggregate limit of $40,000, including any Federal Perkins Loans borrowed as an undergraduate).
Are there fees?
A Perkins Loan borrower is not charged any fees. The school will pay the student directly by check or credit the student's account at least two times during the academic year. The school must notify a student in writing whenever it credits their account with Perkins Loan funds.
Do you have to take this loan?
If a student does not want the Federal Perkins Loan, they may cancel all or a portion of the loan by informing the school within 14 days after the date that the school sends the notice or by the first day of the payment period, whichever is later. If Perkins Loan funds are distributed by check, a student may refuse the funds by not endorsing the check.
--------------------------------
- Rosanna