Federal Student Loans

Federal Subsidized Student

A loan recipient must demonstrate financial need for the loan. Interest is paid for the student while he/she is a qualified full time or part time student. An undergraduate is limited to $3,500 for the first year and $4500 for the second year, or the established need, whichever is lower. The cumulative total cannot exceed $31,000.

Federal Unsubsidized Student Loans

Eligibility is based on the cost of attendance minus other financial aid received. The student is responsible for payment of the interest from the time the loan is received. Interest is usually billed by the lender monthly or quarterly or the student may request that the lender capitalize the interest while in school. Independent students may borrow up to $6,000 per year with a cumulative total of $57,000 which includes all subsidized loans as well. Dependent students may borrow up to a total of $5,500 for the first year and $6,500 for the second year. The total also includes any subsidized loans received.

Repayment terms vary depending on the individual circumstances of each student. The various repayment plans can be explained by each lender prior to entering repayment.