What is stafford unsubsidized loan

You will generally have to fill out a loan cancellation form with your school. To make sure that the loan is cancelled you should follow up with the lender you applied with to make sure that your school returned the funds.

You will have a six month grace period after you graduate, leave school, or drop below half-time enrollment before you are required to begin repayment on your loan.

Payments are generally due monthly. You can choose other repayment plans, such as extended repayment, income-driven repayment and graduated repayment. The Perkins Loan has been discontinued as a federal loan option. Schools can no longer make new Federal Perkins Loans since Sept. The Stafford Loan is a need-based loan, not a credit-based loan. However, if you are currently delinquent or have previously defaulted on any federal student loans, you may not be eligible to receive any form or federal financial aid.

Contact the US Department of Education for more information about rehabilitating your delinquent or defaulted education loans. The loan process, including the FAFSA review, eligibility review, and approval from the lender can take from nine to ten weeks. Find a Student Loan in 3 Easy Steps! Find My Student Loan. US Citizen: Edit. US Cosigner: Edit. Education Level: Edit. Graduation Date: Edit. Please fix the following errors:. Are you a US citizen?

Are you a US Citizen? Do you have a US cosigner? Yes No. Which degree will you be pursuing? Bachelor's Degree Graduate Degree. What will be your graduation date? School Country. School State. Federal Stafford Loans Stafford loans are fixed-rate loans for undergraduate and graduate students attending college at least half time.

Federal Student Loans to Study Abroad You can use federal student loans to study abroad if your school is already apart of the federal student aid program. What's the difference between subsidized and unsubsidized loans? To receive a subsidized Stafford loan, you must be able to demonstrate financial need.

All students are eligible for the unsubsidized Stafford loan regardless of financial need. Direct Subsidized loans have more favorable terms to help students with financial need, including: Direct Subsidized Loans are available to undergraduate students who have financial need. The U. Department of Education pays the interest on a Direct Subsidized Loan: while you are in school at least half-time;for the first six months after you leave school known as a grace period ; and during a period of deferment a postponement of loan payments.

Direct Unsubsidized Loans are available to both undergraduate and graduate students, including: There is no requirement to demonstrate financial need. The student is responsible for paying interest on a Direct Unsubsidized Loan during all periods.

If the student decides not to pay the interest while he or she is in school and during grace periods and deferment or forbearance periods, his or her interest will accumulate and be added to the principal amount of your loan. These limits vary depending on: What year you are in school Whether you are a dependent or independent student. Federal student loan interest rates reset for new loans on July 1 each year. Stafford Loans are daily interest loans. This means interest accumulates each day.

Department of Education's major form of self-help aid and is available through the William D. Ford Federal Direct Loan Program. The federal government does not pay the interest on the loan. Fees of up to 1. For undergraduate students, the interest rate for Federal Direct Unsubsidized loans disbursed between July 1, - June 30, is 3.

The Federal Stafford Loan, also known as the Federal Direct Loan, is the largest and most popular student loan program today. Federal Stafford Loans are low-cost loans borrowed by students to pay for their college education. There are two versions of the Federal Stafford Loan, subsidized and unsubsidized.

The federal government pays the interest on subsidized loans during the in-school and grace periods, as well as other deferment periods, such as during an economic hardship deferment.

The federal government does not pay the interest on subsidized loans during forbearance periods, nor do they pay the interest on unsubsidized loans. Eligibility for the subsidized Federal Stafford Loan is based on financial need, while eligibility for the unsubsidized Federal Stafford Loan does not depend on financial need. Even wealthy students can qualify for unsubsidized loans.

The interest rates on direct loans are fixed rates that change for new loans each July 1. The new interest rate is based on the last year Treasury Note Auction in May. Loan fees are deducted from the loan disbursements. Borrowers may choose to have the loan fee added to the loan balance.

The loan fees are about 1. Loan fees are changed each October 1, based on the federal budget. Borrowers may borrow any amounts that they do not receive as subsidized Federal Stafford Loans as unsubsidized Stafford loans, up to the overall limits.

The annual loan limits for subsidized Federal Stafford Loan are the same for dependent and independent students.