Loan Terms

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 accrued interest will be added  to the principal balance). At repayment time, the amount you owe will be increased by the interest added. Interest rates are loan specific and are determined each July 1.  Rates remain unchanged per loan for the life of the loan.  Maximum allowance per year is $20,500.

Rates on all loans where the first disbursement was before 6/30/2013:  6.8%

Rates on loans where first disbursement was between 7/1/2013 and 6/30/2014:  5.41%

Rates will not exceed 9.5%

Grad PLUS 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 accrued interest will be added  to the principal balance). At repayment time, the amount you owe will be increased by the interest added. Interest rates are loan specific and are determined each July 1.  Rates remain unchanged per loan for the life of the loan. You would apply for this loan AFTER you have surpassed $20,500 in need.  The maximum allowance is Cost of Attendance minus any other aid received.

Rates on all loans where the first disbursement was before 6/30/2013:  7.9%

Rates on loans where first disbursement was between 7/1/2013 and 6/30/2014:  6.41%

Rate will never exceed 10.5%

Interest rate The cost you pay to borrow the money.
Origination Fees Deducted proportionately from each loan disbursement by the Department of Education.
Repayment Plan
Many repayment plans are offered by the holder of the loan.  If you do not make a selection before repayment begins, a standard repayment plan, 10 years or minimum payment of $50, will be set up.  You can change your repayment plan throughout the repayment period of your loan by contacting the servicer of your loan. 
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 the holder of your loan to apply.
Forbearance A temporary cessation or reduction of payments while interest continues to accrue on your account. A forbearance is granted at the holder of the loan's discretion.  Contact the holder of your loan to apply.
Grace Period Specified period of time (six months) after you graduate, leave school or drop below half time before monthly payments commence.
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  A website that lists all federal loans, both undergrad and graduate, that can be viewed.  Provides detailed loan information, but more importantly, contact information for 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.