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Tips and Information on Federal Student Loans, Including Perkins and Stafford Loans  
INFORMATIVE 

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Many institutions, both public and private, provide low-interest loans to students and their parents or guardians. The Federal Government also provides several types of student loans based on the applicant’s level of financial need. Here is a quick list of things to consider:

	The amount of money a student can receive in loans varies by the distributing institution and depends on whether the student is claimed by a parent or guardian as a dependent.
	Since the process of applying for a loan may take several months, it is a good idea to start applying for Federal student loans well in advance.
	The available Federal loan programs can accommodate prospective undergraduate, graduate, vocational, and disabled students.
	Federal loans can be distributed through the school that the student is attending, from the Federal Government directly, or from a third-party private lender or bank.
	Perkins loans are distributed through the school the student is attending.
	Loans coming from the Federal Government directly from the William D. Ford Federal Direct Loan Program are dispersed by the Department of Education.
	Third-party loans through a private lender or bank are from the Federal Family Education Loan (FFEL) program.
	For all federally funded loans, payments are made to the institution that originally dispersed the funds.
	For those with financial need, Federal Perkins loans and both Direct and FFEL-subsidized Stafford loans are available.
	Perkins loans have no minimum amount, but they are capped at $4,000 per year for undergraduates and $6,000 per year for graduate students.
	Interest rates remain at a flat 5 percent for all Perkins loans.
	Those with Perkins loans are not responsible for starting to repay the loan until they have been out of school for 9 months.
	Typically, students have 10 years to repay Perkins loans.
	Subsidized Stafford loans can range in value from $2,625 to $8,500 per year and can increase as a student completes more years of undergraduate, graduate, or professional education.
	Interest rates can fluctuate up to 8.25 percent for subsidized Stafford loans.
	Typically, students range from 10 to 30 years for repayment.
	Those with subsidized Stafford loans must begin payments within 6 to 9 months of leaving school but are not charged monthly interest while in school.
	Subsidized and unsubsidized Stafford loans are only available to students who are enrolled in an academic program at least half time.
	For those who do not demonstrate financial need, Direct and FFEL-unsubsidized Stafford Loans and Federal Parent Loans for Students (PLUS) are available.
	Unsubsidized Stafford loans can range in value from $2,625 to $18,500 per year. PLUS loans are capped at the cost of attendance.
	With Federal unsubsidized Stafford Loans, interest payments start almost immediately and can be paid monthly or accrued until the completion of studies.
	The latter option results in a larger total loan cost but may be more convenient for some students.
	With PLUS loans, the parent must pay interest and principal payments while the student is enrolled in school and must continue payments after completion.
	Check with your lender for available repayment schedules.
	As with any loan, be sure to investigate different lenders, and understand what your loan contract requires of you before agreeing to any loan.

Lister: john
Source: U.S. Department of Labor - Bureau of Labor Statistics

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