TYPES OF FEDERAL LOANS
Direct Subsidized Loan A loan in which the government pays interest while the borrower is attending college. You qualify for this loan based on financial need.
Direct Unsubsidized Loan A loan in which the borrower is responsible for all accrued interest, even while attending college.
Direct PLUS Loan A loan that allows parents of a dependent student to borrow up to the cost of education minus other types of financial aid.
FEDERAL LOAN COMPARISON Note: This chart is subject to change based on federal legislation.
Direct Loan for Students Subsidized and Unsubsidized
Direct PLUS Loan for Parents
Loan Type
Combined annual subsidized and unsubsidized loan limits:
Loan Limits
Your parent can borrow up to the “Cost of Education” minus other financial aid you receive.
Dependent students Freshmen - $5,500 Sophomores - $6,500 Juniors - $7,500 Seniors - $7,500 Undergrad loan limit is $31,000.
Independent students* Freshmen - $9,500 Sophomores - $10,500 Juniors - $12,500 Seniors - $12,500 Undergrad loan limit is $57,500.
Credit approval is required.
6.39% – undergrad unsubsidized and subsidized Effective 7/1/25 (subject to change annually)
8.94% effective 7/1/25 (subject to change annually)
Interest Rate
In-school Interest Payments
Subsidized – paid by government Unsubsidized – paid by student
Paid by parent
Fees
1.06% of amount borrowed
4.25% of amount borrowed
Loan payments (principal and interest) begin 60 days after loan is fully disbursed.
Repayment
Loan payments (principal and interest) begin 6 months after you graduate or drop below half-time status.
*You are an independent student if you meet one or more of the following criteria:
• Age 24 by December 31 of the school year. • Married. • In graduate school at the beginning of the school year. • Providing more than half of the support for dependents living with you. • A veteran.
• On active duty in the U.S. Armed Forces for purposes other than training. • In foster care or ward of court after turning 13. • An orphan. • Emancipated minor or in legal guardianship. • U naccompanied homeless youth or at risk of being a homeless youth.
10
EDUCATIONQUEST.ORG
Powered by FlippingBook