Federal PLUS loans:
- Are not based on financial need.
- Require the borrower to pay the interest for the life of the loan.
- Have a fixed interest rate.
- Have a 3% federal origination fee and a 1% federal default fee which may be deducted from the loan amount.
- Have a loan limit equal to the cost of attendance minus other financial aid received.
- Do not have a grace period. Repayment of principal and interest begins approximately 60 days after final disbursement of the loan.
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All Federal Stafford Loans:
- Have a fixed interest rate if disbursed on or after July 1.
- Have a 1.5% federal origination fee and 1% federal default fee which may be deducted from the loan amount.
- Have a grace period. Repayment begins six months after you graduate, leave school, or drop to less than half-time.
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Partnership Loans:
- Require no repayment during students’ in-school period and up to six months after graduation.
- May be made with a cosigner or without.
- Provide students with interest-only statements during the period of deferment and they can choose to make monthly interest and/or principal payments.
- Have different repayment plans available with a maximum repayment period of 240 months.
- Impose no penalty for prepayment.
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