Overview
The most common federal loan for students is the Stafford Loan. It has two variations:

Subsidized Stafford Loan
With this subsidized loan, the federal government pays the interest that accrues on the loan while you are enrolled in school on at least a half-time basis. These loans are therefore very desirable; however, the Subsidized Stafford Loan is only available to those who demonstrate financial need as defined by the government using information filed on the Free Application for Federal Student Aid (FAFSA). Also, there are yearly borrowing limits that are below the average tuition price at many American colleges.

Unsubsidized Stafford Loan
This loan is not subsidized by the government, meaning that you are responsible for all interest that accrues on the loan in and out of school. These loans are available for all students who complete the FAFSA regardless of their demonstrated financial need. You are still entitled to defer interest payments until after graduation, but this will result in the capitalization of such interest (the interest will be added to the loan balance) resulting in a higher loan balance.

Once you have submitted your FAFSA and a determination of your financial aid eligibility is made, shop around to get the best rate on Stafford loans. Thinking saves thousands.

Funding Limits
Dependent undergraduates are eligible to borrow loan amounts up to: $5,500 for the first year, $6,500 for the second year, and $7,500 for each remaining year thereafter. Independent undergraduates and dependent undergraduate students whose parents were denied a PLUS loan are eligible to borrow more: an additional, unsubsidized $6,000 the first two years and $7,000 each remaining year thereafter.

Federal Stafford loans also have cumulative or "aggregate" limits: students can only borrow up to $31,000 for their undergraduate education. For those independent students and dependent undergraduate students whose parents were denied a PLUS loan, the cumulative Stafford limit is $57,500 of which only $23,000 can be comprised of subsidized loans.

Rates
The Stafford loan rate at repayment is 6.0% for the Subsidisized Stafford Loan and 6.8% for the Unsubsidized Stafford Loan.

APR
APR stands for Annual Percentage Rate, and is a measure of what a loan will cost. It takes into account the rate, fees, terms of the loan, and timing of all payments.

Origination Fee
Effective July 1, 2008, Stafford Loans have a 1.0% origination fee as determined by federal law.

Finance Charge
The finance charge on a loan is the cost of the loan over and above the principal or original amount borrowed. The finance charge depends on the interest rate, the origination fee, the terms of the loan, and the timing of all payments.

Repayment
You begin repaying your Federal Stafford Loan six-months after you graduate or drop below half-time enrollment per federal regulations. You are free to make voluntary payments on your Stafford Loan at any time prior to entering repayment without any pre-payment penalty. When you officially enter repayment, you may choose from four different repayment options:

• Standard Repayment: This is the most common repayment option. It allows you to make one uniform payment each month for the duration of your repayment period.
• Graduated Repayment: You may choose to make smaller payments during the early years of your professional life that incrementally increase over time.
• Income-Sensitive Repayment: You may request a repayment schedule tailored to your monthly gross income. If you choose this option, you must request it every year of your repayment period.
• Extended Repayment: If you owe $30,000 or more in Stafford Loans, you may opt to extend your repayment term to 25 years instead of the standard 10 years.

Term Length
Stafford Loan repayment terms are a standard 10 years but may be extended to 25 years if certain conditions set by federal law are met.

Deferral & Forbearance
During repayment, and upon meeting certain conditions set by federal law, you may be able to make reduced payments or no payments at all for a period of time. This is categorized as a deferment or forbearance depending on the circumstances. On subsidized loans, the government resumes interest payments on your behalf to your lender for the duration of an approved deferment period. On unsubsidized loans, interest will continue to accrue during the same approved deferment period and is added to the loan balance when payments resume. While forbearances are more flexible than securing a deferment, the interest accrued during the period of forbearance for both your subsidized and unsubsidized debt is your responsibility. The qualifying reasons for getting an approved deferment or forbearance include but are not limited to:

• Returning to school on at least a half-time basis
• Internship and residency
• Unemployment
• Economic hardship
• Military service

Disbursement
Federal regulations require lenders to disburse the funds directly to your school.

Benefits
In addition to the 1% interest rate reduction at repayment, MyRichUncle rewards you with another .25% discount off your already low interest rate if you opt to make your loan payments via direct-debit or ACH. Finally, borrowers will receive an extra 1.5% reduction off the current outstanding principal on their loan debt following 48 on-time consecutive payments.

Overview
The Parent PLUS Loan program allows the parents of dependent students to take out loans to supplement the aid packages of their children. The program allows parents to borrow money to cover any and all educational costs not already met by the student's financial aid package up to the full cost of attendance.

Unlike the Stafford Loan, eligibility for the Parent PLUS loan is not determined by the FAFSA. However, some schools may require a parent to complete a FAFSA as part of the application process. Eligibility is contingent upon whether the parent has an adverse credit history.

Funding Limits
Parent PLUS loans have no yearly limit. Parents can borrow up to the full cost of their child's education less any financial aid received.

If a student's parents are denied a Parent PLUS loan, the student becomes eligible for increased unsubsidized Stafford loan limits as detailed in the Undergraduate Stafford section.

Rates
Currently, PLUS loans are at a rate of 8.50%.

APR
APR stands for Annual Percentage Rate, and is a measure of what a loan will cost. It takes into account the rate, fees, terms of the loan, and timing of all payments.

Origination Fees
Parent PLUS Loans have a 3% origination fee as determined by federal law.

Finance Charge
The finance charge on a loan is the cost of the loan over and above the principal, or original amount borrowed. The finance charge depends on the interest rate, the origination fee, the terms of the loan, and the timing of all payments.

Repayment
PLUS Loans enter into repayment immediately once the final disbursement of the loan is made. The first payment due date will typically be within 45 to 60 days after the final disbursement.

Term Length
Parent PLUS Loan repayment terms are a standard 10 years but may be extended to 25 years if certain conditions set by federal law are met.

Deferral & Forbearance
During repayment, and upon meeting certain conditions set by federal law, parent borrowers may be able to make reduced payments or no payments at all for a period of time. This is categorized as a deferment or forbearance depending on the circumstances. Interest will continue to accrue and is added to the loan balance when payments resume. Parent borrowers may qualify for a deferment or forbearance for a number of reasons including but not limited to:

• The student is enrolled on at least a half-time basis
• The parent borrower returning to school on at least a half-time basis
• Unemployment
• Economic hardship
• Military service

Disbursement
Federal regulations require lenders to disburse the funds directly to your school.

Benefits
In addition to the 1.75% interest rate reduction at repayment, MyRichUncle rewards Parent PLUS loan borrowers with another .25% discount off their already low interest rate if they opt to make their loan payments via direct-debit or ACH. Finally, the same borrowers will receive an extra 3.0% reduction off the current outstanding principal on their loan debt following 48 on-time consecutive payments.

Overview
The most common federal loan for students is the Stafford Loan. It has two variations:

Subsidized Stafford Loan
With this subsidized loan, the federal government pays the interest that accrues on the loan while you are enrolled in school on at least a half time basis. These loans are therefore very desirable; however, the Subsidized Stafford Loan is only available to those who demonstrate financial need as defined by the government using information filed on the Free Application for Federal Student Aid (FAFSA). Also, there are yearly borrowing limits that are below the average tuition price at many American colleges.

Unsubsidized Stafford Loan
This loan is not subsidized by the government, meaning that you are responsible for all interest that accrues on the loan in and out of school. These loans are available for all students who complete the FAFSA regardless of their demonstrated financial need. You are still entitled to defer interest payments until after graduation, but this will result in the capitalization of such interest (the interest will be added to the loan balance) resulting in a higher loan balance.

Once you have submitted your FAFSA and a determination of your financial aid eligibility is made, shop around to get the best rate on Stafford loans. Thinking saves thousands.

Funding Limits
Effective July 1, 2007, graduate students are eligible to borrow loan amounts up to $20,500 for each academic year of which only $8,500 can be subsidized.

Federal Stafford loans also have cumulative or "aggregate" limits: graduate students may, in certain cases, borrow up to $138,500 inclusive of their undergraduate aggregate limit. Some medical students can borrow up to $40,500 a year and $224,000 in total during the course of their medical education.

Rates
The Stafford loan rate for graduate students is 6.8%.

APR
APR stands for Annual Percentage Rate, and is a measure of what a loan will cost. It takes into account the rate, fees, terms of the loan, and timing of all payments.

Origination Fee
Effective July 1, 2008, Stafford Loans have a 1.0% origination fee as determined by federal law.

Finance Charge
The finance charge on a loan is the cost of the loan over and above the principal or original amount borrowed. The finance charge depends on the interest rate, the origination fee, the terms of the loan, and the timing of all payments.

Repayment
You begin repaying your Federal Stafford Loan six-months after you graduate or drop below half-time enrollment per federal regulations. You are free to make voluntary payments on your Stafford Loan at any time prior to entering repayment without any pre-payment penalty. When you officially enter repayment, you may choose from four different repayment options:

• Standard Repayment: This is the most common repayment option. It allows you to make one uniform payment each month for the duration of your repayment period.
• Graduated Repayment: You may choose to make smaller payments during the early years of your professional life that incrementally increases over time.
• Income-Sensitive Repayment: You may request a repayment schedule tailored to your monthly gross income. If you choose this option, you must request it every year of your repayment period.
• Extended Repayment: If you owe $30,000 or more in Stafford Loans, you may opt to extend your repayment term to 25 years instead of the standard 10 years.

Term Length
Stafford Loan repayment terms are a standard 10 years but may be extended to 25 years if certain conditions set by federal law are met.

Deferments & Forbearance
During repayment, and upon meeting certain conditions set by federal law, you may be able to make reduced payments or no payments at all for a period of time. This is categorized as a deferment or forbearance depending on the circumstances. On subsidized loans, the government resumes interest payments on your behalf to your lender for the duration of an approved deferment period. On unsubsidized loans, interest will continue to accrue during the same approved deferment period and is added to the loan balance when payments resume. While forbearances are more flexible than securing a deferment, the interest accrued during the period of forbearance for both your subsidized and unsubsidized debt is your responsibility. The qualifying reasons for getting an approved deferment or forbearance include but are not limited to:

• Returning to school on at least a half-time basis
• Internship and residency
• Unemployment
• Economic hardship
• Military service

Disbursement
Federal regulations require lenders to disburse the funds directly to your school.

Benefits
In addition to the 1% interest rate reduction at repayment, MyRichUncle rewards you with another .25% discount off your already low interest rate if you opt to make your loan payments via direct-debit or ACH. Finally, borrowers will receive an extra 1.5% reduction off the current outstanding principal on their loan debt following 48 on-time consecutive payments.

Overview
The Grad PLUS Loan program, introduced on July 1, 2006, is a new federal loan program created by the federal government for students pursuing graduate and professional studies seeking to borrow more money than is available through the Stafford loan program. It allows graduate and professional students to borrow additional funds to help defray educational expenses not already met by the student's financial aid package, including Stafford loans, up to the full cost of attendance.

Eligibility for the PLUS loan is not solely determined by the FAFSA, however borrowers must file a FAFSA with their school as part of the application process. There is a mandatory credit check, and to be eligible the borrower must not have an adverse credit history.

Funding Limits
Grad PLUS loans have no yearly limit. Graduate and professional students can borrow up to the full cost of education less any financial aid received. The school must certify the applicant's eligibility for this loan.

According to federal law, students denied a Grad PLUS loan, unlike the PLUS Loan for Parents program, are NOT eligible for increased Stafford loan limits.

Rates
Currently, Grad PLUS loans are at a rate of 8.50%.

APR
APR stands for Annual Percentage Rate, and is a measure of what a loan will cost. It takes into account the rate, fees, terms of the loan, and timing of all payments.

Origination Fees
Grad PLUS Loans have a 3% origination fee as determined by federal law.

Finance Charge
The finance charge on a loan is the cost of the loan over and above the principal or original amount borrowed. The finance charge depends on the interest rate, the origination fee, the terms of the loan, and the timing of all payments.

Repayment
Repayment on Grad PLUS loans begins within 45 to 60 days after the final disbursement of the loan. Grad PLUS loan borrowers, however, are automatically placed into an approved in-school deferment status because of their concurrent enrollment in a program of study. No payments are required while the loan is in an in-school deferment status or until the borrower graduates or drops below half-time enrollment. Interest does accrue during this in-school deferment period and borrowers will receive interest statements quarterly which they may opt to pay in full at their discretion with no pre-payment penalty. Upon graduation or dropping below half-time status, any unpaid interest will be capitalized to the principal balance.

Term Length
Grad PLUS Loan repayment terms are a standard 10 years but may be extended to 25 years if certain conditions set by federal law are met.

Deferral & Forbearance
During repayment, and upon meeting certain conditions set by federal law, Grad PLUS borrowers may be able to make reduced payments or no payments at all for a period of time. This is categorized as a deferment or forbearance depending on the circumstances. Interest will continue to accrue during a deferment or forbearance period and is added to the loan balance when payments resume. The qualifying reasons for getting an approved deferment or forbearance include but are not limited to:

• Returning to school on at least a half-time basis
• Internship and residency
• Unemployment
• Economic hardship
• Military service

Disbursement
Federal regulations require lenders to disburse the funds directly to your school.

Benefits
In addition to the 1.75% interest rate reduction at repayment, MyRichUncle rewards Grad PLUS loan borrowers with another .25% discount off their already low interest rate if they opt to make their loan payments via direct-debit or ACH. Finally, the same borrowers will receive an extra 3.0% reduction off the current outstanding principal on their loan debt following 48 on-time consecutive payments.