Graduate Fund :: Student Loan Consolidations, Stafford, Plus and Private

Unsubsidized loans are not need-based. You, the borrower, are responsible for the interest on the loan as soon as it is taken out. Most of the terms and conditions of subsidized and unsubsidized Stafford loans are the same.

Eligibility:

U.S. citizen or permanent resident
Full- or half-time undergraduate or graduate student
Not need-based
No credit check required

Loan limits:
Independent students are allowed to borrow more than dependent undergraduate students.

Independent Annual limits:
Year 1	$7,500 per year
Year 2	$7,500 per year
Year 3 & 4	$10,500 per year

Cumulative loan limits differ for undergraduate and graduate/professional students.

For undergraduate students:

Dependent-$23,000 between subsidized and unsubsidized Stafford loans
Independent-$46,000 (up to $23,000 may be in subsidized Stafford loans)

For graduate and professional students:

$138,500 (up to $65,500 may be in subsidized Stafford loans)

Interest rate:
Annual limits are variable and may change on July 1. For loans disbursed on or after July 1, 1998, rates are set:

During in-school, grace or deferment, rate based on 91 day T-bill rate + 1.70%.
During repayment periods, based on 91 day T-bill + 2.30%.
Capped at 8.25%.
Based upon current rates.

Interest capitalization:
Unpaid interest will be capitalized at the start of repayment and at the end of any deferment. If borrowers obtain forbearances, interest may be capitalized no more frequently than quarterly, and again at the end of forbearance.

Total origination or insurance fees:
4% (3% to the federal government and 1% to the state or regional guaranty agency, to cover administrative costs).

Repayment term:
Up to 10 years.

Minimum payment:
$600 per year ($50 per month per FFELP loan account). Borrowers who take out Stafford loans from more than one lender may be required to make more than one minimum payment.

Interest subsidy:
Not applicable.

Repayment begins:
Following a six-month grace period after leaving school.