This article is designed to give the students who have a comprehensive understanding of US financial aid available through the Universities. I look forward to providing assistance to finance for the students want to study in U.S.
1, Stafford Subsidized Loans
This loan is based on financial need as defined by the US Department of Education. It is subsidized because the US Government pays the interest while students are at least half-time studying in university. The government also pays the interest during any authorized period of deferment and for the six-month grace period after students leave university or drop below half-time enrollment.
For all Stafford loans disbursed on or after July 1, 2006 and the interest rate is fixed at 6.8%. For Stafford subsidized loans ( for the undergraduate students only) disbursed on or after 1 July, 2008 the interest rate is fixed at 6.0%. This change from a variable to a fixed rate does not affect a borrower's variable interest rate on loans made before July 1, 2006.
2, Stafford Unsubsidized Loans
This loan is not based on financial need. Student borrowers are responsible for paying the interest from the time the money is disbursed. The interest may be paid as it comes due or it may be postponed and allowed to accumulate while students are in university during any authorized period of deferment and for the six-month grace period after you leave university or drop below half-time enrollment. And the interest accrues on postponed payments and capitalized. If the students choose this billing option they will not make any payments while they are in university. However, this option adds to the amount students will have to repay on their loans when they leave university. It may also increase students' monthly payment when they enter repayment.
For all Stafford unsubsidized loans disbursed on or after July 1, 2006 the interest rate is fixed at 6.8%. This change from a variable to a fixed rate does not affect a borrower's variable interest rate on loans made before July 1, 2006.
3, Federal Parent PLUS
This kinds of loan is not based on financial need. Parents of students are eligible for this loan if their child is a dependent undergraduate student as defined by the US Department of Education, if they meet certain credit guidelines and if the loan is certified by the university. The Parents may use this loan to pay the entire cost of attendance minus any other financial aid received for the dependent undergraduate student. For PLUS loans disbursed on or after July 1, 2006 the interest rate is fixed at 8.5%. This change from a variable to a fixed rate does not affect a borrower's variable interest rate on loans made before July 1, 2006.
An origination fee of 3%, mandated by the US Department of Education, is deducted from the total loan amount and repayment is due to commence within 60 days after the loan is fully disbursed, although deferment of payment may be available through select lenders. A credit check will be completed before approval of the loan has been made.
For loans disbursed prior to 1 July, 2008 repayment is due to commence within 60 days after the loan is fully disbursed, although deferment of payment may be available through select lenders. For loans disbursed on or after 1 July, 2008 repayment is due:
It is Beginning July 1, 2006 for graduate and professional students are eligible to borrow through the Federal PLUS Loan program. Previously this loan was only available to parents of dependent, undergraduate students.
There are many other programs which are available for students who want to continue studying. However, these cannot be awarded to students studying outside the US.
You may read more at site: www.students.net
1, Stafford Subsidized Loans
This loan is based on financial need as defined by the US Department of Education. It is subsidized because the US Government pays the interest while students are at least half-time studying in university. The government also pays the interest during any authorized period of deferment and for the six-month grace period after students leave university or drop below half-time enrollment.
For all Stafford loans disbursed on or after July 1, 2006 and the interest rate is fixed at 6.8%. For Stafford subsidized loans ( for the undergraduate students only) disbursed on or after 1 July, 2008 the interest rate is fixed at 6.0%. This change from a variable to a fixed rate does not affect a borrower's variable interest rate on loans made before July 1, 2006.
2, Stafford Unsubsidized Loans
This loan is not based on financial need. Student borrowers are responsible for paying the interest from the time the money is disbursed. The interest may be paid as it comes due or it may be postponed and allowed to accumulate while students are in university during any authorized period of deferment and for the six-month grace period after you leave university or drop below half-time enrollment. And the interest accrues on postponed payments and capitalized. If the students choose this billing option they will not make any payments while they are in university. However, this option adds to the amount students will have to repay on their loans when they leave university. It may also increase students' monthly payment when they enter repayment.
For all Stafford unsubsidized loans disbursed on or after July 1, 2006 the interest rate is fixed at 6.8%. This change from a variable to a fixed rate does not affect a borrower's variable interest rate on loans made before July 1, 2006.
3, Federal Parent PLUS
This kinds of loan is not based on financial need. Parents of students are eligible for this loan if their child is a dependent undergraduate student as defined by the US Department of Education, if they meet certain credit guidelines and if the loan is certified by the university. The Parents may use this loan to pay the entire cost of attendance minus any other financial aid received for the dependent undergraduate student. For PLUS loans disbursed on or after July 1, 2006 the interest rate is fixed at 8.5%. This change from a variable to a fixed rate does not affect a borrower's variable interest rate on loans made before July 1, 2006.
An origination fee of 3%, mandated by the US Department of Education, is deducted from the total loan amount and repayment is due to commence within 60 days after the loan is fully disbursed, although deferment of payment may be available through select lenders. A credit check will be completed before approval of the loan has been made.
For loans disbursed prior to 1 July, 2008 repayment is due to commence within 60 days after the loan is fully disbursed, although deferment of payment may be available through select lenders. For loans disbursed on or after 1 July, 2008 repayment is due:
- 60 days after the loan is full disbursed, or
- six months after the dependent student for whom the loan was borrowed drops below half-time enrollment
- A parent borrower who chooses to defer the loan can pay interest monthly or quarterly or the interest will be capped no more frequently than quarterly.
It is Beginning July 1, 2006 for graduate and professional students are eligible to borrow through the Federal PLUS Loan program. Previously this loan was only available to parents of dependent, undergraduate students.
There are many other programs which are available for students who want to continue studying. However, these cannot be awarded to students studying outside the US.
You may read more at site: www.students.net
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