institute are an investment in your future.
If you request financial aid, you may be presented with loans as part of the financial aid offer of the educational institution. A loan is money that you borrow and must pay back with interest.
If you decide to get a loan, make sure you understand who offers it and its terms and conditions. Student loans can come from the federal government, from private sources, such as banks or financial institutions, or from other organizations. Loans granted by the federal government, called federal student loans, usually have more benefits than loans from banks or other private sources. Learn more about the differences between federal and private student loans.
What types of federal student loans are available?
The federal student loan program of the US Department of Education. UU. is the federal William D. Ford Direct Loan Program. Under this program, your lender is the US Department of Education. UU. Four types of Direct Loan Program Loans are available:
Federal Loans with a subsidy of interest from the Direct Loan Program are loans made to undergraduate students who meet the necessary requirements and demonstrate financial need to cover the costs of higher education at a university or professional institute.
Direct Loan Program unsubsidized interest loans are loans made to undergraduate students, graduate students and students in a professional graduate program that meet the requirements for participation, but whose participation is not based on financial need.
Direct Loan Program PLUS Loans are loans made to graduate students and students in a professional graduate program, and to parents who have undergraduate students in charge, to help with the payment of study expenses not covered by the rest of the financial aid. Participation requirements are not based on an economic need, but a credit evaluation is necessary. Borrowers who have a negative credit history must meet additional requirements to participate.
The Direct Loan Program Consolidation Loans allow you to combine all federal student loans that you can apply for in a single loan with a single loan management entity
How much money can I borrow on federal student loans?
It depends on whether you are an undergraduate student, a graduate student or a student in a professional graduate program, or a parent.
If you are an undergraduate student, the maximum amount you can borrow each year in Direct Loan Program Subsidized Loans and Direct Loan Program Unsubsidized Loans varies between $ 5,500 and $ 12,500 per year, depending on the year you are in the institution education and its dependency situation.
If you are an undergraduate student or a student in a professional graduate program, you can get a loan of up to $ 20,500 per year in Unsubsidized Loans from the Direct Loan Program. You can also use the Direct Loan Program PLUS Loans to cover the rest of the cost of your university that is not covered by other types of financial aid.
If you are a parent of a dependent undergraduate student, you can receive a PLUS Loan from the Direct Loan Program for the rest of your child’s college cost that is not covered by other types of other financial aid.