Subsidized loan vs subsidized loan - difference and comparison

Subsidized loan vs subsidized loan – difference and comparison 

Subsidized loan vs subsidized loan – difference and comparison

Federal Direct Stafford Loans are low-interest loans that help students finance their secondary education at the cost of continuing their education. Subsidized loans offer better terms than non-subsidized loans and are open to undergraduates with demonstrated financial needs. For subsidized loans, the US Department of Education pays interest if the student is enrolled in school at least part-time.

Comparison Chart

Subsidized LoanNon-Participating Credit
Also known asDirect Subsidized Loans (USA)Non-Direct Participating Loans (US)
suitabilityUndergraduate students need at least part-time schooling and financial assistanceUndergraduate and undergraduate students
QuantityDetermined by school and does not exceed financial needIt is determined by the school, taking into account the cost of attendance and other financial aid received.
InterestThe US education department is interested in: The student is at school at least halfway through school. During the first six months after leaving school (Grace period). During the deferral period (deferral of loan payment)It is paid by the borrower from the beginning. Accrued interest is added to the principal.
How to ApplySubmit application forms at http://studentaid.ed.gov/fafsa.Submit application forms at http://studentaid.ed.gov/fafsa.
Annual credit limits for dependent studentsUndergrad: $1 – $3500, 2 – $4500, 3-Year and $5500; Graduate Professional or Veterinary Medicine-NA;Undergrad: 1st year 2000$, 2nd year 2000$, 3rd year and beyond 2000$; Graduate Professional or Veterinary Medicine-NA
Maximum total debt for dependent students$23,000$7000
Annual credit limits for independent studentsUndergrad: $1 – $3500, 2 – $4500, 3-Year and $5500; Graduate Professional or Veterinary Medicine-NA;Undergrad: 1st year-$6000, 2nd year-6000$, 3rd year and $7,000; Professional Graduate – $20500, Veterinary Medicine – $40500
Maximum total debt for independent students$23,000$34,000
Current Interest RatesUndergraduate-3.4%, Grad-NAUndergrad and Grade-6.8%
Loan Fee1% of the loan amount1% of the loan amount
payback periodStart repayments 6 months after you stop being a student, the total repayment fee is 10-25 yearsStart repayments 6 months after you stop being a student, the total repayment fee is 10-25 years

Contents: Subsidized Loan – Subsidized Loan

  • 1 Types of student loans
    • 1.1 Subsidized Loans
    • 1.2 Unliquidated Loans
  • 2 Eligibility
  • 3 Credit Terms
    • 3.1 Interest Rate
    • 3.2 Amount You Can Borrow
    • 3.3 Fees
  • 4 How to Apply
  • 5 Bibliography

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