Federal College Student Subsidized Loans and Unsubsidized Stafford College Student Loans

To Be Eligible Students:

• You must have a financial aid need
• You must make satisfactory academic progress towards your educational goal
• You must be enrolled in at least half time.
• You must not have prior college student loan defaults or any Federal overpayment blocks
• You must have declared a degree plan on file in the admissions office of your college or university

Freshman subsidized maximum college student loan limits per year are $3,500 and sophomore college student loan limits are $4,500 per academic year. As an example, you are usually considered a freshman if you have 0-29 credit hours and 30 or more, you are would be considered a sophomore. In most cases, developmental course work does not count towards degree or academic levels.

Unlike grants and scholarships, college student loans must be repaid. The maximum life time amount of a college student loans a college student can borrow at all schools with the subsidized program is $31,000 and the maximum lifetime amount a college student can borrow is the combined subsidized and unsubsidized programs of $57,500. If you plan to attend any other college after completion of your program of study at your current college, then please keep in mind when deciding how much you will need to borrow. It is important you borrow conservatively and only borrow what you will need. Once a college student has borrowed the aggregate limits, there will be no additional eligibility for any federal college student loans.

The actual student loan may be limited to less than this, depending on your cost of attendance, other financial aid assistance, and the family financial aid conditions. The U.S. Department of Education will pay the interest during the time the college student is enrolled and during the grace period of six months following enrollment. The interest rate will be variable and can not exceed 8.25%.

For subsidized college student loans, borrowers will not begin there repayment of the loan until six months after the college student completes or drops enrollment to less than half time. The college student loan must be repaid within 10 years.

For unsubsidized college student loans, this program is available to college students, regardless of there income. The interest payments begin the day the student loan is disbursed and the college student is responsible for interest accrued during the school year and deferment periods. Interest rates and loan limits are the same as the Federal Stafford College Student Loan Program. Repayment of the principle begins six months after the college student ceases to be enrolled in at least half time. Generally, dependent college students will not be certified for unsubsidized college student loans unless the parent or guardian has been denied a Federal PLUS Loan.

The options are there for you to choose from. Do your homework and research and chose the best option that suits your financial situation. It is important to apply for all Financial Aid, even if you do not think you qualify. You can never know until you do apply.