The maximum amount you can borrow depends on factors including whether they’re federal or private loans and your year in school. Undergraduates can borrow up to $12,500 annually and $57,500 total in federal student loans. Graduate students can borrow up to $20,500 annually and $138,500 total.
Thereof, are Stafford loans a good deal?
Stafford student loans can be a smart way to finance your college education. Since they come with relatively low, fixed interest rates, they should probably be your first pick before turning to a PLUS loan or a private student loan.
Subsequently, do Stafford loans qualify for PSLF?
Federal Stafford and PLUS loans – including Parent PLUS loans – made under the federal direct loan program are eligible for PSLF. If you have loans made under the Federal Family Education Loan Program or Perkins loans, you can consolidate them under the direct loan program so they qualify.
Do you get a check for a Stafford loan?
If the funds are sent to NLU by check, you will receive a letter and the paper check in the mail to endorse and return back to NLU so it can be applied to your student account. You must be enrolled at least half-time at the time of disbursement.
Unsubsidized Stafford loans accrue interest while in school, during grace periods and deferment periods. Students are not required to pay the accumulating interest during these periods, but if you choose not to pay, it will be added to the principle amount of your loan.
There is no time limit on how long a borrower may receive Direct Unsubsidized Loans or Direct PLUS Loans. However, annual and aggregate limits for Direct Unsubsidized Loans do apply. Direct Unsubsidized Loans are available for both undergraduate and graduate or professional degree students.
Students who are independent can borrow as much as $9,500 in the first or freshman year, $10,500 in the second or sophomore year and $12,500 annually during their remaining school years. These students cannot borrow more than a total of $57,500.
Annual Maximum Loan Limits
|Grade Level||Dependent Students|
|Freshman: 0 – 29 credit hours||$5,500 (no more than $3,500 subsidized)|
|Sophomore: 30 – 59 credit hours||$6,500 (no more than $4,500 subsidized)|
|Junior/Senior: 60+ credit hours||$7,500 (no more than $5,500 subsidized)|
The maximum amount you can borrow each academic year in Direct Unsubsidized Loans ranges from $5,500 to $12,500 for undergraduates, depending on your year in school and your dependency status. Direct Unsubsidized Loans have an annual limit of $20,500 for graduate or professional students.
Interest rates for federal student loans are fixed for the life of the loan and are set annually. For subsidized and unsubsidized Direct Stafford Loans disbursed between July 1, 2021, and June 30, 2022, the interest rates for undergraduates is 3.73%.
Direct Stafford Loans are student loans that must be repaid and are available to both undergraduate and graduate students. … Subsidized Stafford loan – A loan for which the government pays the interest while you are in school, during grace periods, and during any deferment periods.
Amounts can change yearly. The maximum Federal Pell Grant award is $6,495 for the 2021–22 award year (July 1, 2021, to June 30, 2022). your plans to attend school for a full academic year or less.
What is the maximum amount of money offered by the Direct Stafford loan for an undergraduate student?
Maximum Loan Amount: up to $20,500 annually (depending on your grade level, your status as a dependent or independent student, your status as an undergraduate or a graduate student, and your total cost of attendance).
One of the biggest myths about financial aid is that you shouldn’t apply if your family makes too much money. But the reality is that there are no income limits with the Free Application for Federal Student Aid (FAFSA); any eligible student can fill out the FAFSA to see if they qualify for aid.