Federal Stafford Student Loan
Lender
Selection List
- Deferred while the student is in school
- Fixed Interest Rate of 6.0% for the Subsidized loan and 6.8% for the Unsubsidized loan
- Subsidized (interest paid by the government while the student is in school) or Unsubsidized (interest accruing while the student is in school) is determined by the FAFSA calculation
- Fees range from 0-2% of the principal loan amount, depending on which lender is chosen
- Repayment - when the student graduates or drops below half-time status, they have a six-month "grace period" before starting repayment
Federal Parent PLUS Loan
Lender
Selection List
- Fixed Interest Rate of 8.5%
- Fees range from 1-4% of the principal loan amount, depending on which lender is chosen
- Payments begin when the loan is fully disbursed for the year (depending on which lender is chosen, the borrower can apply to have the loan deferred while the student is in school)
Federal Perkins Loan
- Institution is the Lender
- Interest Rate—no interest while enrolled at least half-time,
5% in repayment
- No upfront fees
- Repayment—when the borrower graduates or drops below half-time
status, they have a nine-month “grace period” before starting
repayment
Alternative Loans
- Credit-based student loans taken out through a Bank or Lending institution.
- Co-signer’s are sometimes required depending on the student’s credit.
- Interest rates are variable and depend on the borrower or cosigner’s credit.
- Deferred until student graduates or drops below half-time.
