Borrowing money to pay for your education is an important decision. The cost of higher education is increasing but remains an investment worth your time, effort, and money. Keeping in mind that any money you borrow will have to be repaid, a student loan is a long-term financial obligation.
Graduate and professional students will no longer be eligible to receive subsidized Stafford loans beginning on or after July 1, 2012.
The terms and conditions associated with prior subsidized Stafford loans borrowed before July 1, 2012, will remain unchanged.
An unsubsidized Stafford loan is not based on financial need. There is no collateral, credit check cosigner, or endorser required. The student is responsible for interest that accrues from the date the loan is disbursed (released). The fixed interest rate for an unsubsidized Stafford loan made to a graduate student for which the first disbursement is made on or after July 1, 2006, is 6.8%.
Federal law requires certain fees be charged for each Federal Direct Loan made, including an origination fee and a federal default fee (previously called a guarantee fee). The law specifies the maximum amount for each fee and authorizes both fees to be deducted from the loan amount. Fees charged to the borrower are deducted from the loan proceeds when the money is sent to the student's school.
Federal PLUS loans are government-sponsored, low-interest loans designed to help graduate/professional students. The Federal PLUS Loan Program was created to supplement the loans students can borrow under the Federal Stafford Loan Program. The borrower or endorser must not have an adverse credit history. (A credit verification is required.)