Type of Loan |
Federally sponsored loan available to undergraduate and graduate students enrolled at least half-time at an eligible school. |
Borrower Eligibility |
No credit check required, although borrow may not be in default on a student loan. Collateral and/or co-borrower is not required |
Loan Limits |
Borrow up to the total cost of education, minus financial aid received. |
Interest Rates |
For loans issued beginning 7/1/2006, the interest rate is fixed at 6.8%. |
Fees |
0% default fee with preferred guarantors and servicers 1.5% origination fee on Stafford Loans guaranteed 5/1/2008–6/30/2008. 1% origination fee on Stafford Loans guaranteed 7/01/2008–6/30/2008. |
Disbursement Timing |
Multiple disbursements are made directly to the school. Disbursement schedules typically align with school terms or semesters. |
Repayment Start Date |
Repayment is deferred until 6 months after the student graduates or drops below half-time attendance. |
Repayment Term |
Monthly payments are scheduled over a 10 year period, with a $50 minimum payment. Loans may be prepaid without penalty. |
Repayment Options |
Multiple, flexible repayment options are available including standard repayment, graduated repayment, income-sensitive repayment, and extended repayment. |
Borrower Benefits* |
- 0% default fee
- 0.30 percentage point interest rate reduction for automatic debit payments
|
Additional Information |
Students receive combined billing on all their Student Loan Funding federal and private loans. |
