Federal Loans for the Academic Years 2007-2008

Federal Loans

Subsidized Stafford Loans

• Need-based loan

• Available to U.S. citizens and permanent residents

• 6.8% fixed interest rate

• The Government pays interest during in-school period

• Zero origination fees

• Up to 3% origination fee deducted from principal at disbursement

• Up to 1% guarantee fee deducted from principal at disbursement

• 6-month grace period

• 10-year repayment; $50 minimum payment/month

• $8,500 maximum loan amount per year; $65,500 aggregate loan limit

• Some lenders reduce origination and guarantee fees and/or offer repayment incentives

Unsubsidized Stafford Loans

• Non-need-based loan

• Available to U.S. citizens and permanent residents

• 6.8% fixed interest rate

• Interest accrues from time of disbursement and is added to principal one-time upon commencement of repayment

• Payment of interest can be deferred until the end of the grace period

• Zero origination fees

• Up to 3% origination fee deducted from principal at disbursement

• Up to 1% guarantee fee deducted from principal at disbursement

• 6-month grace period

• 10-year repayment; $50 minimum payment/month

• $20,500 maximum loan per year MINUS the amount borrowed from the subsidized Stafford Loan

• $138,500 aggregate loan limit including amount borrowed from the subsidized Stafford Loan

• Some lenders reduce origination and guarantee fees and/or offer repayment incentives

PLUS Loan for Graduate Students

The Federal PLUS Loan offers an affordable, accessible way for graduate students to cover the full cost of education after the borrower has reached the annual or cumulative maximum on Federal Stafford Loans.

• Available to U.S. citizens and permanent residents

• Need-based and non-need-based loan

• 8.5% fixed interest rate

• Interest accrues from disbursement and is typically capitalized once prior to entering into repayment

• May have no grace period. Repayment begins 60 days after final disbursement

• Payments of principal and interest may possibly be deferred while in school

• 10-year repayment or up to 30 years if Federal Stafford and Graduate PLUS amounts exceed $30,000

• $50 minimum payment/month

• Maximum amount per year equals the cost of attendance minus other financial aid and other forms of educational funding

• Credit check required