Federal Direct Student Loans

• Federal Direct Subsidized Stafford Loan- $3500.00 for first year students enrolled in a program that is a full academic year program. Repayment begins six months after student drops to less than half time status; student has up to 10 years to repay. Current interest rate is 0% in-school (subsidized by federal government) and beginning July 1, 2008, 6.0% during repayment.

• Federal Direct Unsubsidized Stafford Loan- Same amounts as Subsidized Stafford; if student is not eligible to receive funds from the Subsidized Stafford Loan, limit cannot exceed $5500.00. Beginning in July 1, 2008 the interest rate is 6.0% and will accrue during in-school and six-month grace periods.

• Federal Direct Parent Loan for Undergraduate Students (PLUS)- Annual loan limit is the dependent student`s cost of education minus any estimated financial aid received. Repayment begins within sixty days of disbursement, or six months after student drops to less than half time status with up to ten years to repay. Beginning July 1, 2008 the interest rate is 7.9%.

Current Interest Rates for DIRECT LOANS

6.8% for Federal Stafford Loans during in-school, grace and deferment periods (effective July 1, 2007)

6.0% for Federal Stafford Loans during in-school, grace and deferment periods (effective July 1, 2008)

5.6% for Federal Stafford Loans during in-school, grace and deferment periods (effective July 1, 2009)

4.5% for Federal Stafford Loans during in-school, grace and deferment periods (effective July 1, 2010)

3.4% for Federal Stafford Loans during in-school, grace and deferment periods (effective July 1, 2011)

7.9% for Federal PLUS Loans during repaymet and deferment (effective July 1, 2007)

Current Interest Rates for FFELP LOANS effective July 1, 2007

6.8% for Federal Stafford Loans during in-school, grace and deferment periods

8.5% for Federal PLUS Loans during repaymet and deferment (Based on the 91-day T-bill + 3.1%, not to exceed 9.00%

ALTERNATIVE STUDENT LOANS

• NJ CLASS - Annual loan limit is the cost of education minus any estimated financial aid received. Three repayment options: 1) defer all payments until after graduation; 2) pay interest only; 3) pay interest and principal. Students must take full Stafford eligibility first. Click here to learn more.

• Alternative Loans - Alternative loans should be a last resort for students whose financial aid package already includes Stafford Loans and other sources of financial aid and still needs additional funding to meet their educational costs. Annual loan limit is the cost of education minus any estimated financial aid received. Eligibility is determined by the lender. The borrower may need to be credit worthy and have established annual income, or need a co-signer.