Many families rely on federal student loans to help pay for college. This table describes features of the most common federal loans.
Direct Unsubsidized Stafford Loan
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Direct Subsidized Stafford Loan
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Perkins Loan
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Direct PLUS Loan (Parent/Grad)
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Description
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A federal student loan available to students regardless of financial need
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A federal student loan available only to students with demonstrated financial need
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A federal student loan available only to students with the greatest financial need
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A federal loan available to parents and graduate students with good credit histories regardless of financial need
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Eligibility
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Undergraduate and graduate students enrolled at least half-time
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Undergraduate students enrolled at least half-time
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Undergraduate and graduate students (can be enrolled less than half-time)
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Parents of undergraduate students enrolled at least half-time, and graduate and professional students
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Funds Dispersed By
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Federal Government
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Federal Government
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College
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Federal Government
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Borrower
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Student
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Student
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Student
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Parent or graduate/ professional student
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Based on Financial Need?
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No
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Yes
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Yes
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No
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Interest Rate for Loans Disbursed in Academic Year 2016/2017
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3.76% fixed for undergraduates; 5.31% fixed for graduate students |
3.76% fixed
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5% fixed
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6.31% fixed
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Interest Subsidized?
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No
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Yes*
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Yes*
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No
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Grace Period
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6 months
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6 months
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Generally 9 months
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6 months
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Loan Limit for Academic Year 2016/2017
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Dependent undergraduates: 1st year $5,500 ($3,500 subsidized), 2nd year $6,500 ($4,500 subsidized), 3rd to 5th year $7,500/year ($5,500 subsidized), $31,000 maximum Independent undergraduates and dependent undergraduates whose parents don’t qualify for a PLUS Loan: 1st year $9,500 ($3,500 subsidized), 2nd year $10,500 ($4,500 subsidized), 3rd to 5th year $12,500/year ($5,500/year subsidized), $57,500 maximum Graduate students: $20,500 per year, $138,500 maximum including undergraduate loans |
Undergraduates: $5,500/year $27,500 limit Graduate students: $8,000/year $60,000 limit (including undergraduate loans) |
Total cost of education, minus any other financial aid received
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If you have questions, contact the Experts at Henssler Financial:
- Experts Request Form
- Email: experts@henssler.com
- Phone: 770-429-9166