| Available to parents borrowing on behalf of dependent undergraduate students and are available to graduate and professional students.
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.
- Loan deferment may be requested for loans disbursed after July 1, 2008 by calling the Direct Loan Servicing Center at 1-800-848-0979. Request must be made after the loan funds have disbursed.
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Subsidized and unsubsidized Federal Stafford loans are the most common types of education loans.
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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