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Stafford and PLUS Loan Summary
- Undergraduate and graduate or professional degree students may receive Stafford Loans. Graduate and professional degree students and parents of dependent undergraduate students may receive PLUS Loans.
- You must be enrolled at least half-time* at an eligible school in a program leading to a degree or certificate.
- Student loans are borrowed money that must be repaid, with interest, just like car loans and home mortgages.
- Student loans cannot be canceled because you didn’t get—or didn’t like—the education you paid for with the loans, didn’t get a job in your field of study or because you’re having financial difficulty.
- Loans are legal obligations, so think about the amount you’ll have to repay before you take out a loan.
- The maximum Stafford Loan amount you can borrow each academic year* depends on your academic level in school and whether you are a dependent or independent student.
- Students who demonstrate financial need are eligible for a subsidized Stafford Loan to cover some or all of that need.
- For students who are eligible for a subsidized Stafford Loan, the U.S. Department of Education pays the interest while you’re in school at least half-time,* for the first six months after you leave school (your grace period) and during a deferment (a postponement of loan payments).
- Unsubsidized Stafford Loans do not require a student to have financial need. The borrower is responsible for paying all interest on unsubsidized Stafford Loans.
- If you have a FFEL loan and need to find a participating lender, your school might have a list. This list is only a starting place when looking for financing. Check the terms and fine print carefully.
Most student financial aid comes from the U.S. Department of Education grant, work-study and loan programs you read about here. Most aid is based on need; your high school grades and class ranking are not considered in this process. If you still have questions about federal student aid programs after reviewing this publication, you can:
- Go online to our Web site at www.FederalStudentAid.ed.gov.
This site provides comprehensive, FREE information on the student aid process, and it links to other student aid-related sites.
- Call our Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243).
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