Loans
Federal Loans
What types of federal loans are there?
The federal government offers students and parents subsidized and unsubsidized loans to supplement the cost of education, including:
- Federal Perkins Loan
- Federal Direct Subsidized Stafford Loan
- Federal Direct Unsubsidized Stafford Loan
- Federal Direct Parent Loan for Undergraduate Students (PLUS)
These loans have various yearly amounts, interest rates and eligibility requirements.
How do I qualify for federal loans?
Students are considered for the Federal Perkins Loan, Federal Direct Subsidized Stafford Loan, and Federal Direct Unsubsidized Stafford Loan based on the FAFSA.
Parents may apply for the Federal Direct PLUS Loan through www.studentloans.gov.
What’s the difference between subsidized and unsubsidized loans?
Subsidized loans: The government pays (subsidizes) the interest on the loan while the student is in school at least half time, for the first six months after the student leaves school, and if the student qualifies to have payments deferred.
- Federal Perkins Loan
- Federal Direct Subsidized Stafford Loan
Unsubsidized loans: Interest accrues on an unsubsidized loan from the time it is first paid out. You can pay the interest while you are in school and during the grace period and deferment period, or you can allow it to accrue and be capitalized (added to the principal amount of your loan. If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay because you will be charged interest on a higher principal amount.
Get more information on these loans »
- Federal Direct Unsubsidized Stafford Loan
- Federal Direct Parent Loan for Undergraduate Students (PLUS)
How much should I borrow?
Students and parents should borrow only the amount they need for the upcoming year and should apply for federal loans before considering alternative loans. Certain limits exist for how much a student may borrow per year.
When do I start repaying federal loans?
Students and parents may start paying off federal loans or loan interest while the student is in school. You may also defer paying off federal loans as follows:
| Federal Loan | Deferment Period |
|---|---|
| Federal Perkins Loan | 9 months after leaving school or enrolled less than half time |
| Federal Direct Subsidized Stafford Loan | 6 months after leaving school or enrolled less than half time |
| Federal Direct Unsubsidized Stafford Loan | 6 months after leaving school or enrolled less than half time |
| Federal Direct Parent Loan for Undergraduate Students (PLUS) | 6 months after leaving school or enrolled less than half time* |
*In order to defer payment on the Federal Direct PLUS Loan, parents must contact Direct Loans at 800-848-0979.
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