Loan Descriptions

Amount per Grade Level Stafford Loans Perkins Loans PLUS Loans Other/ Alternative Loans
Base amounts* Unsubsidized amounts** Total***
Freshman $3,500 $4,000 $7,500 $4,000 Depends upon the estimated cost of attendance and other financial aid and student loans to be received. Normally depends upon the estimated cost of attendance, other financial aid and student loans to be received, and a credit analysis.
Sophomore $4,500 $4,000 $8,500 $4,000
Junior $5,500 $5,000 $10,500 $4,000
Senior $5,500 $5,000 $10,500 $4,000
Graduate or professional student $8,500 $12,500 $20,500 $6,000
Undergraduate limit $23,000 $23,000 $46,000 $20,000^
Total undergraduate and graduate limit $65,500 $73,000 $138,500 $40,000
* Base amounts for dependent and independent students - The base amount may be either subsidized or unsubsidized (or both), depending upon eligibility determined by the school. Your eligibility for Stafford Loans may be prorated if your academic program or last period of enrollment is less than an academic year.
** Additional unsubsidized amounts for independent students - If parents are not eligible for a PLUS Loan, the school may permit a dependent student to borrow up to these additional amounts.
*** Total for independent students
^ If the student has successfully completed two years of a baccalaureate degree program – otherwise the limit is $8,000.


Subsidized Stafford Loan

A Stafford Loan is a low-interest, long-term loan with special benefits for students.

  • The interest is fixed and may change each July 1. The current interest rate is 6.8% for loans disbursed after July 1, 2006.
  • You normally have up to 10 years to repay the loan, but there are some repayment plans that may give you more time depending upon the amount you borrow. However, you pay more for longer plans.
  • Scheduled payments will not be lower than $50 per month and begin after a six-month grace period after you graduate (or drop below half-time attendance).

For students with financial need, the federal government will pay the interest that comes due on a subsidized Stafford Loan while you are in school, during your grace period, and during authorized periods when payments can be suspended, called deferments.

Unsubsidized Stafford Loan

An unsubsidized Stafford Loan is the same as a subsidized Stafford Loan, except the federal government does not assist students by paying the interest. The interest is always your responsibility to pay. If you do not pay the interest while you are in school, your grace period, or during deferments, the interest that accrues will be capitalized, or added to your principal balance, and interest begins to accrue again on the higher amount.

Federal Perkins Loan

A Federal Perkins Loan is a very low-interest rate loan for students with high financial need.

  • The interest is fixed at 5%.
  • You normally have up to 10 years to repay the loan.
  • Your scheduled payments will not be lower than $40 per month and begin after a nine-month grace period after you leave school. You repay the school normally through its Perkins Loan servicer.

Not every school participates in Perkins Loans.

PLUS Loan

Parents and stepparents may borrow the PLUS Loan for their dependent students.

  • The interest for a PLUS Loan is fixed for loans disbursed after July 1, 2006. The interest rate is 9% under the Direct Loan Program and 8.5% under the Federal Family Loan Program.
  • Your parent normally has up to 10 years to repay the loan, but there are some repayment plans that may give your parent more time depending upon the amount borrowed. However, it costs more for longer plans.
  • Scheduled payments be at least $50 per month and begin just after the PLUS Loan is fully disbursed.

Other/Alternative Loans

Some students, usually in expensive programs, take out private loans in addition to federal loans. The federal government does not back alternative loans. These loans are more difficult to qualify for because they require a credit analysis to determine your ability to repay the loan. The terms and conditions of the loans are up to the individual lenders.

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