Consolidating subsidized and unsubsidized stafford loans
Consolidating subsidized and unsubsidized stafford loans - Chat adult freines
As a freshman and sophomore, you can borrow more from Perkins; in subsequent years, the loan limits are the same.
While this is often the case for Stafford Loans as well, students may apply in some cases to stretch their payments out over a longer period, up to a maximum of 25 years.
Direct Subsidized Loans also require demonstrated need, but a wider range of incomes can qualify.
All three types of loans are open to qualified undergraduates; graduate students can only get Perkins Loans or Direct Unsubsidized Loans. All Federal Perkins Loans are subsidized by the government, which means that the government will pay the interest that accrues while the student is in school at least half-time. Perkins loans charge no fees of any kind for loan origination or default.
Your prior student loans cannot be in default to be eligible for additional federal student loans.
One way to remove a default is to consolidate your loans.
There are many types of loans to help students pay for higher education costs.
With their usually lower interest rates and more generous terms, federal student loans are the first place families should look for funding not covered by scholarships and grants. Perkins loans are available only to students with significant financial need, as determined by their answers to the FAFSA and their school's guidelines.
Federal student loans must be repaid, even if you do not complete your degree, you are unable to find a job related to your program of study or you are unsatisfied with the education you paid for with your loan.
Despite what you may be told by some companies, loan consolidation is free.
If you're an undergraduate whose family income makes you eligible for a Perkins loan, you're likely also eligible for a Direct Subsidized Loan. For 2015-2016, the Perkins loan 5% fixed interest rate is higher than the Federal Direct Loan interest rate for undergraduates (4.29%), but Perkins loans don't have an origination fee.
If you don't end up needing money from both, do the math to determine which offers the better deal for you.
View Policy Handbook Federal student loans are developed specifically for students and many times offer a lower-than-typical interest rate and may contain an interest-free grace period before repayment begins.