FAQs
For most students and families who decide to borrow, federal student loans are the best option. Repayment on federal student loans doesn't start until after you leave school, and with fixed interest rates and payment plans, monthly payments can be manageable.
What kind of loans can a college student get? ›
Most students have two main options for student loans: federal (government) loans or private loans from banks, credit unions, and other lenders. You should research all your options for federal loans, also known as Direct loans, before shopping around for private loans.
What are the four types of student loans? ›
Federal Loans
There are four types of Direct Loans: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. Direct Subsidized Loans are made to eligible undergraduate students based on financial need. Your school determines the amount you can borrow.
What is the money students can borrow to go to college? ›
For federal direct student loans, undergraduates can borrow up to $12,500 annually and up to $57,500 total.
How long does it take to pay off 50000 in student loans? ›
Total Repaid
For example, say you have a $50,000 loan balance with a 6.22% interest rate — the average student loan interest rate for graduate students. On the standard 10-year repayment plan, you'd pay $561 per month and $17,277 in interest over time.
How do parents borrow money for college? ›
The Federal Student Aid office has two types of PLUS loans: one for graduate students and one for parents. A parent PLUS loan offers money to help pay for your child's undergraduate education. Biological and adoptive parents are eligible, and in some cases, stepparents may also qualify.
Which type of student loan is best? ›
You can save money by choosing a loan with a low interest rate. A low interest rate means you'll have to pay back less money in the long run. A subsidized loan is your best option. With these loans, the federal government pays the interest charges for you while you're in college.
Who doesn't qualify for student loans? ›
If you don't meet baseline eligibility requirements, or if you've previously defaulted on a loan, you may not be approved for a federal student loan. You must maintain "satisfactory progress" in school to be approved for student loans. You can take steps to regain or improve your eligibility for student loans.
What kind of credit score do you need for a student loan? ›
For this reason, lenders often require a minimum credit score between 650 and 700 for a private student loan. If you don't have a credit score of at least 650, you'll likely need to add a creditworthy cosigner to your loan.
How much student loan can I get per semester? ›
Federal borrowing limits for independent undergraduates
Year in school | Overall borrowing limit | Subsidized borrowing limit |
---|
First year | $9,500 | $3,500 |
Second year | $10,500 | $4,500 |
Third year and beyond | $12,500 | $5,500 |
Total limit | $57,500 | $23,000 |
Mar 29, 2024
$57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students-No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.
What type of loan is best for education? ›
Education Loan Interest Rate Range
Bank of India | Purpose |
---|
Star Education Loan – Abroad | Full time degree or post graduation courses abroad |
Star Vidya Loan | For studies in premier institutions in India |
Star Progressive Education Loan | Parents of students pursuing schooling from Nursery to Class XII. |
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How to borrow money to pay for college? ›
These include the following:
- Federal Direct Loans – Offered by the federal government and usually included in your financial aid offer. ...
- Institutional loans – Offered by the college you plan to attend; however, not all colleges offer them.
- Private loans – Offered by private banks and other financial institutions.
What is the maximum FAFSA loan amount? ›
Aggregate Maximum Loan Limits
| Amount |
---|
Dependent Students | $31,000 (no more than $23,000 subsidized) |
Independent Students | $57,500 (no more than $23,000 subsidized) |
Graduate Students | $138,500 (no more than $65,500 subsidized) |
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How much will Sallie Mae give you? ›
Sallie Mae does not have a maximum amount that you can borrow. Sallie Mae permits students to borrow up to the full cost of attending a qualified school, minus any financial aid they may have received.
What is the best deal when borrowing money for college? ›
For most students, the best student loan is the Federal Direct Subsidized Loan. The subsidized loan does not accrue interest while you attend college and has all the repayment benefits of other federal student loans. If you can, make sure you maximize this loan first before considering others.
What is a reasonable amount of money to borrow for college? ›
A good rule of thumb is to borrow about 125% of the difference between your net college costs and the amount of income and savings you can devote to paying those costs, rounded up to the nearest $1,000.
What is your cheapest option for borrowing money to go to school? ›
Federal student loans offer many benefits compared to other options you may consider when paying for college: The interest rate on federal student loans is fixed and usually lower than that on private loans—and much lower than that on a credit card!
What is the best option for students to afford college? ›
6 Best Ways to Pay for College
- Choosing a Cheaper College. ...
- Studying Abroad. ...
- Community College. ...
- Take a Gap Year. ...
- High School Programs. ...
- Fill Out the FAFSA as Early as Possible. ...
- Take Advantage of Educational Tax Benefits. ...
- File for Employment-Based Aid. You can find several types of financial aid that are based on employment.