What is the difference between the different loans?
Asked by Inservice Vai
on Thu 6/23/16 10:31 AM
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Inservice Vai
Thu 6/23/16 10:35 AM
- Stafford Loans are a series of fixed rate student loans for undergraduate students attending college at least half-time (six credits or more). Students are considered for the Stafford Loan based on the information inputted in their FAFSA Application.
- Subsidized Loan: The Subsidized Loan has a 3.86% APR interest rate and the federal government pays the interest on the loan while the student is in school. Principle and Interest payments are postponed while students are enrolled in at least six credits and during their grace period.
- Unsubsidized Loan: The Unsubsidized Loan has a 3.86% APR interest rate and the student is responsible for the accrued interest while they are in school. Principle payments are postponed while students are enrolled in at least six credits and during their grace period.
- Plus Loan: A Parent Loan for Undergraduate Students (PLUS) is a federal guaranteed loan and is available for a parent of dependent undergraduate students. The parent may borrow up to the student's annual cost of attendance minus any financial assistance the student has been or will be awarded during the period of enrollment. The Parent Loan has a 6.41% APR interest rate and repayment begins within 60 days after the loan has been fully disbursed. Interest begins to accumulate at the time the first disbursement is made (on the first semester amount only until the second half is disbursed). Students and Parents will need to re-apply every academic year for the loan.
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