Direct PLUS loans are federal loans that graduate or professional degree students or parents of dependent undergraduate students can use to help pay for education expenses. … Be enrolled at least half-time at an eligible school in a graduate or professional program.
Then, do you have to pay back a direct subsidized loan?
You’re effectively getting your responsibility to pay that interest back “waived” with a subsidized loan during those time periods. Once you start repayment, the government stops paying on that interest, and your repayment amount includes the original amount of the loan, and the interest, accruing from that moment.
Moreover, what are the 4 types of student loans?
There are four types of federal student loans available:
- Direct subsidized loans.
- Direct unsubsidized loans.
- Direct PLUS loans.
- Direct consolidation loans.
What are the income limits for subsidized student loans?
$57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students-No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.
Direct PLUS Loans are federal loans that graduate or professional students and parents of dependent undergraduate students can use to help pay for college or career school. PLUS loans can help pay for education expenses not covered by other financial aid.
Summary: Direct Subsidized Loans (sometimes called Subsidized Stafford Loans) are federal student loans borrowed through the Direct Loans program that offer undergraduate students a low, fixed interest rate and flexible repayment terms.
Direct unsubsidized loans are loans that help cover the cost of higher education for both undergraduate and graduate or professional students at a four-year college or university, community college, or trade, career, or technical school.
A Perkins loan is a type of federal student loan based on financial need. A Perkins loan is a subsidized loan, meaning that the federal government pays the loan’s interest while you are in school. Under federal law, the Perkins loan program ended and are no longer available to students.
|Max Loan Length||30 years, depending on amount borrowed and repayment plan chosen|
|Interest Rate||Variable, does not exceed 8.25%|
|Max Loan Amount||$2,625 to $8,500|
Subsidized Loans do not accrue interest while you are in school at least half-time or during deferment periods. Unsubsidized Loans are loans for both undergraduate and graduate students that are not based on financial need.
Direct Subsidized Loan Eligibility
Be an undergraduate student. Be able to prove financial need. Be enrolled at a school at least half-time. Be enrolled in a program that can lead to a degree or certificate awarded by the school.
In general, you must maintain enrollment in an undergraduate course of study at a nonforeign school to receive a Federal Pell Grant. … Once you have earned a baccalaureate degree or your first professional degree or have used up all 12 terms of your eligibility, you are no longer eligible to receive a Federal Pell Grant.