Consolidating direct stafford loans
Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. (Some people refer to these loans as Stafford Loans or Direct Stafford Loans.) What’s the difference between Direct Subsidized Loans and Direct Unsubsidized Loans? Other than interest, is there a charge for this loan? Generally, you must also be enrolled in a program that leads to a degree or certificate awarded by the school. Department of Education offers eligible students at participating schools Direct Subsidized Loans and Direct Unsubsidized Loans. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your Program.
The actual loan amount you are eligible to receive each academic year may be less than the annual loan limit.If any additional loan funds remain, they will be returned to you.All loan funds must be used for your education expenses. *Note: If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. Can I cancel a loan if I decide that I don’t need it or if I need less than the amount offered? Where can I find information about the student loans I’ve received?These limits vary depending on whose parents are ineligible for a Direct PLUS Loan, you may be able to receive additional Direct Unsubsidized Loan funds.
The following chart shows the annual and aggregate limits for subsidized and unsubsidized loans.
This is called your “maximum eligibility period.” Your maximum eligibility period is generally based on the published length of your current program.
You can usually find the published length of any program of study in your school’s catalog.
For example, if you are enrolled in a four-year bachelor’s degree program, the maximum period for which you can receive Direct Subsidized Loans is six years (150 percent of 4 years = 6 years).
If you are enrolled in a two-year program, the maximum period for which you can receive Direct Subsidized Loans is three years (150 percent of 2 years = 3 years).
For these students, there is also a higher aggregate limit on Direct Unsubsidized Loans.