Consolidating undergraduate and graduate student loans
The government pays your interest for you while you’re in school.
Subsidized loans are reserved for students who can demonstrate a financial hardship.
Though there are two major sources of student loans — federal and private – the federal side dominates the action, both in amount of money available and loan repayment programs.
There were 21 million students enrolled in colleges and universities in the fall of 2016 and eight million of them received federal loans from the William D. The students took in 6.3 billion in loans, or about ,040 per student. Ford Federal Direct Loan Program includes Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans and Direct Consolidation Loans.
The interest rates usually are higher than those on federal loans and there are some involved that aren’t part of federal loans.
Freshmen can borrow up to ,500; sophomores ,500; and third-year students and beyond can borrow up to ,500 in subsidized loans.
You cannot accrue more than ,000 in subsidized Stafford Loans throughout your undergraduate studies.
Plus loans (Parent Loan for Undergraduate Students) are student loans provided to the parents of dependent students, but the funds are distributed directly to the student.
Parents are responsible for the payment of these loans including interest.