Government-Guaranteed Loans

Government-Guaranteed Stafford Loans

There are two types of Stafford loans: subsidized and unsubsidized. You must qualify for financial aid to receive a Subsidized Stafford loan...

 

• Subsidized Stafford Loan – As either a dependent or independent student, you may qualify for this need-based, low-interest loan. The government pays the interest on the Subsidized Stafford loan as long as the student is enrolled in school on at least a half-time basis. Repayment begins following a six-month grace period after leaving school.

 

• Unsubsidized Stafford Loan – Unsubsidized Stafford loans are non-need-based loans that are made available to both dependent and independent students. Interest is accrued on these loans from the time they are disbursed. Unpaid interest will be capitalized at the start of repayment and at the end of a deferment. Repayment begins following a six-month grace period after leaving school.

 

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Government-Guaranteed PLUS Loans

The PLUS Loan (formerly called the "Parent PLUS Loan") is for creditworthy parents of dependent students. It is the parent′s responsibility to repay the loan. Parents can borrow up to the cost of the education, minus any financial aid the student is eligible to receive. A PLUS Loan is a loan made to the parents and does require a credit check.

 

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Stafford Loan Limits

For dependent students whose parents are not eligible to borrow under the Federal PLUS Program, the amount a student can borrow under the unsubsidized program is the same as for an independent student. Independent students who are not eligible for a full Subsidized Federal Stafford Loan may borrow their remaining subsidized eligibility under the unsubsidized program.

 

If you're looking to apply for a Stafford or PLUS loan, please contact the Department of Education at 1.800.433.3243 or visit their Student Aid on the Web information center. You may want to contact your school Financial Aid Office for additional guidance.

 

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