| Subsidized Federal Stafford Loan |
Your eligibility for this loan is determined by the results of the FAFSA. Interest is paid by the federal government during your in-school, grace (six month period which occurs after in-school) and deferment periods. Fixed rate 6.8%. This loan will be discontinued for Graduate students effective 7/1/2012.
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| Unsubsidized Federal Stafford Loan |
You are responsible for interest payments during all phases of the loan (in-school, grace, deferment and repayment). Principal payments can be postponed, however, interest will be capitalized (all unpaid accured interet will be added to the principal balance). At repayment time, the amount you owe will be increased by the interest added. Fixed rate 6.8%. |
| Grad PLUS Loan |
This is an 7.9% fixed rate unsubsidized loan. It can be applied for after you have applied for after your Subsidized and Unsubsidized Stafford Loan eligibility has been determined. |
| Interest rate |
The cost you pay to borrow the money. Stafford loans have a fixed interest rate of 6.8% and Grad PLUS loans have an interest rate of 7.9%.
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| Fees |
Deducted proportionately from each loan disbursement (Check) by the Department of Education. The origination fee amount on Subsidized loans is 1.5% and 4% on Graduate PLUS loan.
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Repayment Plan
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Many repayment plans are offerd by the holder of the loan. If you do not make a selection before repayment begins, a standard repayment plan will be set up. You can change your repayment plan throughout the repayment period of your loan by contacing the servicer of your loan. The standard maximum repayment term is 10 years and a $50 minimum monthly payment is required. As the amount that you borrow increases, the monthly payment will increase too.
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| Accrued Interest |
Interest that accumulates on the unpaid balance of your loan principal. |
| Capitalization of Interest |
Addition of accrued, unpaid interest to the principal of your loan. |
| Default |
Failure to repay your loan on time, or in accordance with other terms of the promissory note. |
| Deferment |
Postponement of repayment due to certain conditions (in-school at least ½ time, unemployment, economic hardship, graduate fellowship, or rehabilitation training). Contact your lender to apply |
| Forbearance |
A temporary cessation or reduction of payments while interest continues to accrue on your account. A forbearance is granted at the lender's discretion. |
| Grace Period |
Specified period of time (six months) after you graduate or leave school in which you need not make principal payments on your loan. |
| Consolidation |
Under consolidation, your outstanding federal loans (subsidized Stafford, unsubsidized Stafford, Perkins, Direct Subsidized Stafford, Direct Unsubsidized Stafford, SLS, FISL and HPSL) would be combined into a single new loan with new terms, i.e. a new interest rate and a longer repayment period (up to 30 years). While this may reduce your monthly payments, it will result in higher total interest costs overall. |
| NSLDS |
www.nslds.ed.gov. A website that can be viewed that provides information, including the holder of all federal loans held by an individual. |
| HOLDER OR SERVICER |
The entity that is contracted by the Dept of Education to collect payments, alter repayment plans, negogiate postponement of payments, and commences collection/default proceedings in the event of non-payment of a loan. |
