Federal student loans
Federal student loans supply financial help for students enrolled at schools that participate in federal aid programs. These loans are provided by the U.S. Department of Education through theFederal Direct Student Loan Program (FDLP).
Whereas alternative student loans can be used for any expense, federal student loans generally cover school expenses, including tuition and fees, room and board, books and school supplies, as well as any transportation. Loans can also help pay for technology needs (i.e., a computer) and for necessary dependent care.
Federal Stafford Student Loans
Stafford Student Loans are federal loans made to college and university students to supplement personal and family resources, scholarships, grants, and work-study. They may be subsidized by the U.S. Government or may be unsubsidized depending on the student’s financial need.
Both subsidized and unsubsidized federal student loans are guaranteed by the Department of Education either directly or through guarantee agencies. Nearly all students are eligible to receive a Stafford Student Loans regardless of credit score or other financial issues. Both types offer a grace period of 6 months, which means that no payments are due until 6 months after graduation or 3 months after the borrower becomes a less-than-full-time student without graduating.
Stafford Loan Limits
| Dependent Students | Annual Loan Limits |
|---|---|
| First Year | $5,500 ($3,500 subsidized/$2,000 unsubsidized) |
| Second Year | $6,500 ($4,500 subsidized/$2,000 unsubsidized) |
| Third Year and Beyond | $7,500 ($5,500 subsidized/$2,000 unsubsidized) |
| Independent Students | Annual Loan Limits |
|---|---|
| First Year | $9,500 ($3,500 subsidized/$6,000 unsubsidized) |
| Second Year | $10,500 ($4,500 subsidized/$6,000 unsubsidized) |
| Third Year and Beyond | $12,500 ($5,500 subsidized/$7,000 unsubsidized) |
| Graduate or Professional | $20,500 ($8,500 subsidized/$12,000 unsubsidized) |
| Lifetime Limits | |
|---|---|
| Undergraduate Dependent | $31,000 (Up to $23,000 may be subsidized) |
| Undergraduate Independent | $57,500 |
| Graduate or Professional | $138,500 (Up to $65,000 may be subsidized) or $224,000 (for Health Professionals) |
| For loans first disbursed on or after July 1, 2008. | |
Tags: Federal student loans, Loans, Student loan consolidation, student loans
Posted by FinanceAZ
on Jan 12 2011. Filed under Student loans.
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