Federal Loans
Selection Process for Recommended Lenders
Perkins Loans
- Need-based loan
- Available to U.S. citizens and permanent residents
- 5% interest during repayment
- The Government pays interest during in-school period
- No origination or guarantee fees
- 9-month grace period
- 10-year repayment; $40 minimum payment/month
- $6,000 maximum loan per year; $40,000 aggregate loan limit
- Limited funding; awarded to highest-need students
Subsidized Stafford Loans
- Need-based loan
- Available to U.S. citizens and permanent residents
- 6.8% fixed interest rate
- The Government pays interest during in-school period
- Zero origination fees
- Up to 3% origination fee deducted from principal at disbursement
- Up to 1% guarantee fee deducted from principal at disbursement
- 6-month grace period
- 10-year repayment; $50 minimum payment/month
- $8,500 maximum loan amount per year; $65,500 aggregate loan limit
- Some lenders reduce origination and guarantee fees and/or offer repayment incentives
Unsubsidized Stafford Loans
- Non-need-based loan
- Available to U.S. citizens and permanent residents
- 6.8% fixed interest rate
- Interest accrues from time of disbursement and is added to principal one-time upon commencement of repayment
- Payment of interest can be deferred until the end of the grace period
- Zero origination fees
- Up to 3% origination fee deducted from principal at disbursement
- Up to 1% guarantee fee deducted from principal at disbursement
- 6-month grace period
- 10-year repayment; $50 minimum payment/month
- $20,500 maximum loan per year MINUS the amount borrowed from the subsidized Stafford Loan
- $138,500 aggregate loan limit including amount borrowed from the subsidized Stafford Loan
- Some lenders reduce origination and guarantee fees and/or offer repayment incentives
PLUS Loan for Graduate Students
- Available to U.S. citizens and permanent residents
- Need-based and non-need-based loan
- 8.5% fixed interest rate
- Interest accrues from disbursement and is typically capitalized once prior to entering into repayment
- May have no grace period. Repayment begins 60 days after final disbursement
- Payments of principal and interest may possibly be deferred while in school
- 10-year repayment or up to 30 years if Federal Stafford and Graduate PLUS amounts exceed $30,000
- $50 minimum payment/month
- Maximum amount per year equals the cost of attendance minus other financial aid and other forms of educational funding
- Credit check required
