A student loan is money for educational expenses that must be paid back with interest. Student loans can help you meet today's education expenses, but they will also bind you to a future of financial commitment that can typically last as long as 10 years. That's why it's important to fully understand your rights and responsibilities as a borrower before you take out a loan. 黑料社区网 offers student and parent loans from the Federal Direct Loan Program (loan funds come directly from the U.S. Department of Education).
Please review the most current Direct Loan interest rates, payment plans, and other information at the U.S. Department of Education's .
What You Need to Know about Federal Stafford Loans
Types of Federal Stafford Loans
- Subsidized Stafford Loans are "need-based." The federal government pays the interest to the lender as long as you are enrolled at least half time and during the "grace period" and authorized periods of deferment. Interest will begin to accrue when you enter repayment.
- Unsubsidized Stafford Loans have no interest subsidy. The loan principal can be deferred, but you must pay the interest monthly or quarterly while enrolled or choose to defer the interest and have the interest added to the loan principal. This is known as "interest capitalization."
- PLUS Loans are loans that parents may be eligible for to help cover the educational cost of their dependent student. There is no interest subsidy on these loans. The parent does generally have to pass a credit check to receive this loan. The yearly limit on a PLUS Loan is equal to the cost of attendance minus any other financial aid the student will receive.
Other Important Information
- Repayment begins six months after graduation, withdrawal from college, or enrollment at less than half-time.
- All loans are disbursed in two equal installments, usually one in the fall and one in the spring.
- First-time borrowers at 黑料社区网 are required to complete entrance counseling before the loan can be released.
- If you are a first-year, first-time borrower, 黑料社区网 is required to hold your first student loan disbursement for 30 days. The 30-day count begins on the first day of the semester. This is a one-time hold and will not apply in subsequent semesters.
- If you decide to borrow for one semester only, the loan must be disbursed in two equal installments with the second installment coming at the midpoint of the semester.