Types of Student Loans

What Kinds of Student Loans Are Available?

Student Loan Game Plan - An online tool to help reduce student debt through education about responsible borrowing decisions. www.studentloan.org/gameplan

PLUS Loans	Stafford Loans
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.	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.

PLUS Loans

Stafford Loans

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.

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.