Unlike Subsidized loans, borrowers with Unsubsidized loans accumulate interest on loan balances from the time a loan is funded.
The interest rate for Perkins Loans is a fixed 5%, and undergraduate students may borrow up to ,500 per year with a lifetime limit of ,500.
Professional and graduate degree students can borrow up to ,000 per year, with a lifetime limit of ,000 including any Perkins Loans taken out for undergraduate expenses.
Federal student loans categorized as Direct Stafford Loans comes in two broad types: subsidized and unsubsidized loans.
With Direct Subsidized loans, undergraduate students that have a financial need can borrow from the Department of Education so long as they are attending school at least half-time at an accredited college or university.
There are several different types of federal student loans available to a variety of borrowers.
These include Direct Stafford Loans, Perkins Loans, Grad PLUS Loans, Parent PLUS Loans and consolidation loans, and each type has specific criteria for who is eligible, the interest rate offered, loan amounts, and repayment programs.Perkins Loan borrowers do not owe payments during their time at school, or for a six-month grace period after leaving school.Graduate students may borrow funds for their education through the Grad PLUS program, so long as they are enrolled at least half-time in an accredited college or university.Borrowing limits for students enrolled in an accredited school are aggregate and based on how far along they are in their degree program and dependent status.First-year undergraduate students may borrow up to ,500, with no more than ,500 in subsidized loans if they are claimed as a dependent by their parents.While the reasoning for federal student loans remains the same, the loan programs of today look different.