|
Common Questions
|
Perkins
|
Federal or Direct Stafford
|
PLUS
|
| Do I need to complete a FAFSA? |
Yes |
Yes |
Depends
on financial aid office policy |
| Do I need to demonstrate financial need to be eligible? |
Yes |
Yes for Subsidized
No for Unsubsidized |
No |
| Is this a fixed or variable rate loan? |
Fixed |
Variable |
Variable |
| What is the current interest rate? |
5% |
In college: 2.77%
In repayment: 3.37% |
4.17% |
| When does the rate change? |
Rate does
not change |
Yearly on July 1 |
Yearly
on July 1 |
| What is the maximum interest rate? |
5% |
8.25% |
9.00% |
| Who is the borrower of the loan? |
Student |
Student |
Parent |
| Is this a credit-based loan? |
No |
No |
Yes |
| Are there any origination fees or other upfront fees? |
No |
Up to 4% origination and
guarantee fees |
Up to
4% origination and guarantee fees |
| When does the loan enter repayment? |
Nine
months after student leaves college or enrolls less than
half-time |
Six months after student
leaves college or enrolls less than half-time |
Sixty
days after final disbursement of loan |
| What is the standard repayment period? |
Ten years |
Ten years |
Ten years |
| Is there a penalty for early repayment |
No |
No |
No |
| What is the minimum monthly payment? |
$40 |
$50 |
$50 |
| Is the interest tax deductible? |
Yes |
Yes |
Yes |
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