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How can I get the maximum benefit from the department of education student loan?

I would like to apply for student loan but I am not so sure about the procedure and ways I can use to get the maximum benefits from the loan. I know that loans are categorized into several categories depending on the duration of pay and other factors but is there a way through which I can get access to subsidized and unsubsidized loans and what are the advantages and disadvantages of them. Lastly, could you please tell me about the federal student loan interest rate so that I can make the best decision based on an informed opinion?

Timothy Norman

in Student Loans

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Tara Andrews on January 25, 2018

To apply for a student loan, you must first of all fill out the loan application form. Filling and submitting the application form is free and very simple and it also gives you the access to a large source of fundingto help pay for your college fees. Moreover, many colleges and states within the USA use the form data to determine your eligibility for their aid programs. Therefore, in case you get lucky you may qualify for college and some private funding altogether. But the major question is when you should apply for the loan.

The truth of the matter is that the loan application forms for the 2018-2019 financial year have already been made available. Therefore, its important that you first determine the payment method and duration you would like before arriving at the best aid at the moment. There are several categories of aid to choose from.

Federal student aid
There are a few federal student loan programs but they often have limited funds therefore they are very competitive.

State student aid
The state student aid is accessible from the fafsa.gov. It is important to take into consideration that most of the states do have financial aid programs but they often have limited funds. Consequently, they often have a short deadline.

To get information about the subsidized and unsubsidized aid you can refer to the link
https://www.drew.edu/financialassistance/loans/-subsidized- and-- unsubsidized-loans. For the subsidized loans, the highest amount that a freshman can borrow is $3,500, sophomores can take up to $4,500 while junior and senior students can take up to $5,500. The undergraduate students who are ineligible for the subsidized loans can apply for the equivalent amount in the unsubsidized loan category with an additional chance to borrow an extra $2,000 in the unsubsidized loan after exhausting their initial subsidized or unsubsidized loans eligibility. On the other hand, graduate students have the ability to borrow a maximum of $20,500. Moreover, undergraduate students can also borrow subsidized loans in surplus of their financial need but no student is allowed under any circumstance to take unsubsidized loans in excess of their cost attendance.

The federal government student loan interest rate is as shown below.
The loan program for the subsidized federal loan for the undergraduate category is 3.76% while that for the unsubsidized federal loan for the undergraduate students its 3.76% and finally that for the unsubsidized federal loan for the graduate students is 5.31%.

Wilson Hansena year ago

Whereas most people will talk about the loan amount and interest rates as has been addressed by the answer above, its also interesting for you to know that there is a fee rate for the subsidized and unsubsidized loans. The fee rate is at a constant of 1.068 for both subsidized and unsubsidized loans. Therefore, it is important to consider both the interest rate and the fee you will be paying before making your decision. Since both of the loan plans have a 1.068 initiation fee that will have to be deducted from the sum amount of the loan principal that has been loaned. Therefore, when considering the interest rate its also an important to consider the fee rate as it will be charged along with the interest rate. Always be sure that you have considered and reconsidered these factors before you decide to apply for the loan.


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