Learn about the eligibility criteria for the federal student aid programs.

Different types of aid (private scholarships, state grants, etc.) have different rules, called eligibility criteria, to determine who gets the aid. Here are the eligibility criteria for the federal student aid programs.

Basic Eligibility Criteria

Our general eligibility requirements include that you have financial need, are a U.S. citizen oreligible noncitizen, be enrolled in an eligible degree or certificate program at your college or career school, and more. Make sure you’re familiar with our basic eligibility criteria, and ask a collegefinancial aid office if you have any questions about whether you qualify.

Most students are eligible to receive financial aid from the federal government to help pay for college or career school. Your age, race, or field of study won’t affect your eligibility for federal student aid. While your income is taken into consideration, it does not automatically prevent you from getting federal student aid.

To receive federal student aid, you’ll need to…

Qualify to obtain a college or career school education, either by having a high school diploma orGeneral Educational Development (GED) certificate, or by completing a high school education in ahomeschool setting approved under state law

AND

Be enrolled or accepted for enrollment as a regular student in an eligible degree or certificate program

AND

Be registered with Selective Service, if you are a male (you must register between the ages of 18 and 25)

AND

Have a valid Social Security number unless you are from the Republic of the Marshall Islands, Federated States of Micronesia, or the Republic of Palau

AND

Sign certifying statements on the Free Application for Federal Student Aid (FAFSA) stating that

- you are not in default on a federal student loan and do not owe a refund on a federal grant and

- you will use federal student aid only for educational purposes

AND

Maintain satisfactory academic progress in college or career school 

In addition you must…

Be a U.S. CITIZEN or U.S. NATIONAL

You are a U.S. citizen if you were born in the United States or certain U.S. territories, if you were born abroad to parents who are U.S. citizens, or if you have obtained citizenship status through naturalization. If you were born in American Samoa or Swains Island, then you are a U.S. national.

OR

Have a GREEN CARD

You are eligible if you have a Form I-551, I-151, or I-551C, also known as a green card, showing you are a U.S. permanent resident

OR

Have an ARRIVAL-DEPARTURE RECORD

Your Arrival-Departure Record (I-94) from U.S. Citizenship and Immigration Services must show one of the following:

-Refugee

-Asylum Granted

-Cuban-Haitian Entrant (Status Pending)

-Conditional Entrant (valid only if issued before April 1, 1980)

-Parolee

OR

Have BATTERED IMMIGRANT STATUS

You are designated as a “battered immigrant-qualified alien” if you are a

victim of abuse by your citizen or permanent resident spouse, or you are the child of a person designated as such under the Violence Against Women Act.

OR

Have a T-VISA

You are eligible if you have a T-visa or a parent with a T-1 visa.

Start filling out the FAFSA at www.fafsa.gov.

The U.S. Department of Education’s office of Federal Student Aid provides more than $150 billion every year in grants, loans, and work-study funds to students attending college or career school. Visit StudentAid.gov today to learn how to pay for your higher education.

There is no age limit when it comes to receiving federal student aid.

Students With a Parent Who Was Killed in Iraq or Afghanistan

If your parent died as a result of military service in Iraq or Afghanistan after the events of 9/11, you might be eligible for additional Federal Pell Grant funding or for an Iraq and Afghanistan Service Grant.

Non-U.S. Citizens

Generally, if you have a “green card” (in other words, if you are a permanent resident alien), you will be considered an “eligible noncitizen” and will be able to get federal student aid if you meet the other basic eligibility criteria. Full details of which immigration statuses make you an eligible noncitizen are at our Non-U.S. Citizen page.

Students With Criminal Convictions

If you are incarcerated, have a conviction for a drug offense, or are subject to an involuntary civil commitment after completing a period of incarceration for a sexual offense, your eligibility for federal student aid may be limited.

Students With Intellectual Disabilities

Students with intellectual disabilities may receive funding from the Pell Grant, Federal Supplemental Educational Opportunity Grant, and Federal Work-Study programs in certain circumstances.

Staying Eligible

Once you’re in college or career school, make sure you stay eligible for federal student aid by paying attention to a few things, including keeping on track toward graduation. And remember to fill out your Free Application for Federal Student Aid (FAFSA^®) every year.

Regaining Eligibility

You might lose federal student aid eligibility in a number of ways. Some of the most common are that you

• are in default on a federal student loan,
• don’t maintain satisfactory academic progress in college or career school, or
• are convicted of a drug offense.

Know More about Loan Consolidation

A Direct Consolidation Loan allows you to consolidate (combine) multiple federal education loans into one loan. The result is a single monthly payment instead of multiple payments.

There is no application fee to consolidate your federal education loans into a Direct Consolidation Loan. If you are contacted by someone offering to consolidate your loans for a fee, you are not dealing with one of the U.S. Department of Education’s (ED's) consolidation servicers. To apply for a Direct Consolidation Loan, you must follow the process outlined below.

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Should I consolidate my loans?

Carefully consider whether loan consolidation is the best option for you. Loan consolidation can greatly simplify loan repayment by centralizing your loans to one bill and can lower monthly payments by giving you up to 30 years to repay your loans. You might also have access to alternative repayment plans you would not have had before, and you’ll be able to switch your variable interest rate loans to a fixed interest rate.

However, if you increase the length of your repayment period, you'll also make more payments and pay more in interest. Be sure to compare your current monthly payments to what monthly payments would be if you consolidated your loans.

You also should consider the impact of losing any borrower benefits offered with the original loans. Borrower benefits from your original loan, which may include interest rate discounts, principal rebates, or some loan cancellation benefits, can significantly reduce the cost of repaying your loans. You might lose those benefits if you consolidate.

If you want to lower your monthly payment amount but are concerned about the impact of loan consolidation, you can consider reevaluating your budget and income situation. You can also consider deferment or forbearance as options for short-term payment relief needs.

Once your loans are combined into a Direct Consolidation Loan, they cannot be removed. The loans that were consolidated are paid off and no longer exist.

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What types of loans can be consolidated?

Most federal student loans, including the following, are eligible for consolidation:

• Direct Subsidized Loans
• Direct Unsubsidized Loans
• Subsidized Federal Stafford Loans
• Unsubsidized Federal Stafford Loans
• Direct PLUS Loans
• PLUS loans from the Federal Family Education Loan (FFEL) Program
• Supplemental Loans for Students (SLS)
• Federal Perkins Loans
• Federal Nursing Loans
• Health Education Assistance Loans
• some existing consolidation loans

Private education loans are not eligible for consolidation. If you are in default, you must meet certain requirements before you can consolidate your loans.
A PLUS loan made to the parent of a dependent student cannot be transferred to the student through consolidation. Therefore, a student who is applying for loan consolidation cannot include the PLUS loan the parent took out for the dependent student’s education.
A complete list of the federal student loans eligible for consolidation is available in the application.

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When can I consolidate my loans?

Generally, you are eligible to consolidate after you graduate, leave school, or drop below half-time enrollment.

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What are the requirements to consolidate a loan?

Here are some tips on qualifying for a Direct Consolidation Loan:

• You must have at least one Direct Loan or FFEL Program loan that is in a grace period or in repayment.
• If you want to consolidate a defaulted loan, you must either make satisfactory repayment arrangements on the loan with your current loan servicer before you consolidate, or you must agree to repay your new Direct Consolidation Loan under the
  
  • Income-Based Repayment Plan,
  • Pay As You Earn Repayment Plan, or
  • Income-Contingent Repayment Plan.
• Generally, you cannot consolidate an existing consolidation loan again unless you include an additional Direct Loan or FFEL Program loan in the consolidation. However, under certain circumstances you may reconsolidate an existing FFEL Consolidation Loan without including any additional loans.

There are no application fees for a Direct Consolidation Loan, and you may prepay your loan at any time without penalty.

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What is the interest rate on a consolidation loan?

A Direct Consolidation Loan has a fixed interest rate for the life of the loan. The fixed rate is based on the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of 1%. There is no cap on the interest rate of a Direct Consolidation Loan.

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When do I begin repayment?

Repayment of a Direct Consolidation Loan can begin 60 days after the loan is disbursed, or sooner. Your loan servicer will let you know when the first payment is due. The repayment term ranges from 10 to 30 years, depending on the amount of your consolidation loan, your other education loan debt, and the repayment plan you select.
Note: If any loan you want to consolidate is still in the grace period, you can delay entering repayment on your new Direct Consolidation Loan until closer to your grace period end date. You will indicate this when you apply, and the consolidation servicer will wait to process your application until the appropriate time.

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Are there different repayment plans?

There are several repayment plans that are designed to meet the different needs of individual borrowers. You will receive more detailed information on your repayment options from your consolidation servicer when you consolidate your loan.

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Know more about Repayment Plans

Work with your loan servicer to choose a federal student loan repayment plan that’s best for you.

To make your payments more affordable, repayment plans can give you more time to repay your loans or can be based on your income.

Although you may select or be assigned a repayment plan when you first begin repaying your student loan, you can change repayment plans at any time—for free.

Overview of Direct Loan and FFEL Program Repayment Plans

Repayment Plan	Eligible Loans	Monthly Payment and Time Frame	Eligibility and Other Information
Standard Repayment Plan	Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans all PLUS loans all Consolidation Loans (Direct or FFEL)	Payments are a fixed amount. Up to 10 years (up to 30 years for Consolidation Loans).	All borrowers are eligible for this plan. You’ll pay less over time than under other plans.
Graduated Repayment Plan	Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans all PLUS loans all Consolidation Loans (Direct or FFEL)	Payments are lower at first and then increase, usually every two years. Up to 10 years (up to 30 years for Consolidation Loans).	All borrowers are eligible for this plan. You’ll pay more over time than under the 10-year Standard Plan.
Extended Repayment Plan	Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans all PLUS loans all Consolidation Loans (Direct or FFEL)	Payments may be fixed or graduated. Up to 25 years.	If you're a Direct Loan borrower, you must have more than $30,000 in outstanding Direct Loans. If you're a FFEL borrower, you must have more than $30,000 in outstanding FFEL Program loans. Your monthly payments will be lower than under the 10-year Standard Plan or the Graduated Repayment Plan. You’ll pay more over time than under the 10-year Standard Plan.
Revised Pay As You Earn Repayment  Plan (REPAYE)	Direct Subsidized and Unsubsidized Loans Direct PLUS loans made to students Direct Consolidation Loans that do not include PLUS loans (Direct or FFEL) made to parents	Your monthly payments will be 10 percent of discretionary income. Payments are recalculated each year and are based on your updated income and family size. If you're married, both your and your spouse’s income or loan debt will be considered, whether taxes are filed jointly or separately (with limited exceptions). Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 or 25 years.	Any Direct Loan borrower with an eligible loan type may choose this plan. Your monthly payment can be more than the 10-year Standard Plan amount. You may have to pay income tax on any amount that is forgiven. Good option for those seeking Public Service Loan Forgiveness (PSLF).
Pay As You Earn Repayment Plan (PAYE)	Direct Subsidized and Unsubsidized Loans Direct PLUS loans made to students Direct Consolidation Loans that do not include (Direct or FFEL) PLUS loans made to parents	Your maximum monthly payments will be 10 percent of discretionary income. Payments are recalculated each year and are based on your updated income and family size. If you're married, your spouse's income or loan debt will be considered only if you file a joint tax return. Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 years.	You must be a new borrower on or after Oct. 1, 2007, and must have received a disbursement of a Direct Loan on or after Oct. 1, 2011. You must have a high debt relative to your income. Your monthly payment will never be more than the 10-year Standard Plan amount. You’ll pay more over time than under the 10-year Standard Plan. You may have to pay income tax on any amount that is forgiven. Good option for those seeking Public Service Loan Forgiveness (PSLF).
Income-Based Repayment Plan (IBR)	Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans all PLUS loans made to students Consolidation Loans  (Direct or FFEL) that do not include  Direct or FFEL PLUS loans made to parents	Your monthly payments will be 10 or 15 percent of discretionary income. Payments are recalculated each year and are based on your updated income and family size. If you're married, your spouse's income or loan debt will be considered only if you file a joint tax return. Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 or 25 years. You may have to pay income tax on any amount that is forgiven.	You must have a high debt relative to your income. Your monthly payment will never be more than the 10-year Standard Plan amount. You’ll pay more over time than under the 10-year Standard Plan. Good option for those seeking Public Service Loan Forgiveness (PSLF).
Income-Contingent Repayment Plan (ICR)	Direct Subsidized and Unsubsidized Loans Direct PLUS Loans made to students Direct Consolidation Loans	Your monthly payment will be the lesser of  20 percent of discretionary income, or the amount you would pay on a repayment plan with a fixed payment over 12 years, adjusted according to your income. Payments are recalculated each year and are based on your updated income, family size, and the total amount of your Direct Loans. If you're married, your spouse's income or loan debt will be considered only if you file a joint tax return or you choose to repay your Direct Loans jointly with your spouse. Any outstanding balance will be forgiven if you haven't repaid your loan in full after 25 years.	Any Direct Loan borrower with an eligible loan type may choose this plan. Your monthly payment can be more than the 10-year Standard Plan amount. You may have to pay income tax on the amount that is forgiven. Good option for those seeking Public Service Loan Forgiveness (PSLF). Parent borrowers can access this plan by consolidating their Parent PLUS Loans into a Direct Consolidation Loan.
Income-Sensitive Repayment Plan	Subsidized and Unsubsidized Federal Stafford Loans FFEL PLUS Loans FFEL Consolidation Loans	Your monthly payment is based on annual income. Up to 15 years.	You’ll pay more over time than under the 10-year Standard Plan. The formula for determining the monthly payment amount can vary from lender to lender.

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Repay Your Federal Perkins Loan

Perkins Loan repayment plan options are not the same as those for Direct Loan Program or FFEL Program loans. Check with your school for more information on Perkins Loan repayment plans.

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Consolidate Your Loans

If you have multiple federal student loans, you can consolidate them into a single Direct Consolidation Loan. This may simplify repayment if you are currently making separate loan payments to different loan holders or servicers, as you'll only have one monthly payment to make. There may be tradeoffs, however, so you'll want to learn about the advantages and possible disadvantages of consolidation before you consolidate.

Do You Know about loan servicers?

A loan servicer will help you manage the repayment of your federal student loans.

A loan servicer is a company that handles the billing and other services on your federal student loan. The loan servicer will work with you on repayment plans and loan consolidation and will assist you with other tasks related to your federal student loan. It is important to maintain contact with your loan servicer. If your circumstances change at any time during your repayment period, your loan servicer will be able to help.

Do I select my loan servicer?

No. Your loan is assigned to a loan servicer by the U.S. Department of Education (ED) after your loan amount is first disbursed (paid out). The loan has been disbursed when your school transfers your loan money to your school account, gives money to you directly, or a combination of both. Your loan is usually disbursed in at least two payments, and your loan servicer will contact you after the first payment is made to you.

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Whom do I contact to get information about my loan?

If your loan is for the current or upcoming school year, contact your school’s financial aid office directly for information about

• loan status,
• loan cancellation within 120 days of disbursement, and
• loan disbursement amounts and timing.

Only your school's financial aid office can provide this information.
If your loan was disbursed in a past school year and you’re still in school, contact your loan servicer when you

• change your name, address, or phone number;
• graduate;
• drop below half-time enrollment;
• stop going to school; or
• transfer to another school.

If you’re no longer in school, contact your loan servicer when you

• change your name, address, or phone number;
• need help making your loan payment;
• have a question about your bill; or
• have other questions about your student loan.

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Who is my loan servicer?

Visit My Federal Student Aid to view information about all of the federal student loans you have received and to find contact information for the loan servicer or lender for your loans.
The following are loan servicers for federally held loans made through the William D. Ford Federal Direct Loan (Direct Loan) Program and the Federal Family Education Loan (FFEL) Program.

Loan Servicer	Contact
CornerStone	1-800-663-1662
FedLoan Servicing (PHEAA)	1-800-699-2908
Granite State – GSMR	1-888-556-0022
Great Lakes Educational Loan Services, Inc.	1-800-236-4300
HESC/Edfinancial	1-855-337-6884
MOHELA	1-888-866-4352
Navient	1-800-722-1300
Nelnet	1-888-486-4722
OSLA Servicing	1-866-264-9762
VSAC Federal Loans	1-888-932-5626

Top

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Will ED ever transfer my federally held loans to a different servicer?

Possibly. In some cases, ED needs to transfer loans from one servicer to another servicer on the federal loan servicer team. ED transfers loans as part of its efforts to ensure that all borrowers are provided with customer service and repayment support. If ED needs to transfer your federal student loans from your assigned servicer to another servicer, your loans will still be owned by ED. The “transfer” to another servicer on ED’s federal loan servicer team simply means that a new servicer will provide the support you need to fully repay your loans.
Here’s what you should expect if your loan is transferred to a new servicer:

• You may receive an email or a letter from your assigned servicer when your loans are transferred to the new servicer.
• You will receive a welcome letter from the new servicer after your loans are added to the new servicer’s system. This notice will provide you with the contact information for the new servicer and inform you of actions that you may need to take.
• All of your loan information will be transferred from your assigned servicer to your new servicer.
• There will be no change in the terms of your loans.
• Your previous loan servicer and new loan servicer will work together to make sure that all payments you make during the transfer process are credited to your loan account with the new servicer.

After you receive the welcome letter from your new servicer, you should do the following:

• Begin sending your loan payments to your new servicer. If you use a bank or bill paying service to make your loan payments, update the new servicer’s contact information with the bank or bill paying service.

• Follow the new servicer’s instructions for creating an online account so that you can more easily communicate with the new servicer and keep track of your loan account.

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Whom do I contact for information about my Federal Perkins Loan?

If you have Federal Perkins Loans, here’s whom to contact for repayment information:

• Contact the school where you received your Federal Perkins Loan for details about repaying your loan. Your school may be the servicer for your loan.
• Contact the ECSI Federal Perkins Loan Servicer at 1-866-313-3797 if you know that your Federal Perkins Loan has been assigned to ED.

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Whom do I contact for information about my FFEL Program loan that isn’t owned by ED?

If you have privately-owned FFEL Program loans, contact your lender for details about repayment options and tools for your FFEL Program loans that are not owned by ED.

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Whom do I contact for information about my Health Education Assistance Loan (HEAL) Program loan?

If you’re not in default on your HEAL Program loan, contact your loan servicer for help with account-related questions. Use the contact information your loan servicer provided to you.

 

First step toward getting federal aid for college, career school, or graduate school.

Completing the Free Application for Federal Student Aid (FAFSA^®) is the first step toward getting federal aid for college, career school, or graduate school.

To apply for federal student aid, you need to complete the FAFSA^® (the Free Application for Federal Student Aid).

Completing and submitting the FAFSA^® is free and quick, and it gives you access to the largest source of financial aid to pay for college or career school.
In addition, many states and colleges use your FAFSA data to determine your eligibility for state and school aid, and some private financial aid providers may use your FAFSA information to determine whether you qualify for their aid.

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Why should I fill out the FAFSA^®?

If you don’t fill out the FAFSA, you could be missing out on a lot of financial aid! We’ve heard a number of reasons students think they shouldn’t complete the FAFSA. Here are a few:

• “I (or my parents) make too much money, so I won’t qualify for aid.”
• “Only students with good grades get financial aid.”
• “The FAFSA is too hard to fill out.”
• “I’m too old to qualify for financial aid.”

If you think any of these statements apply to you, then you should read “Myths About Financial Aid.” The reality is, EVERYONE who's getting ready to go to college or career school should fill out the FAFSA!

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When do I fill out the FAFSA^®?

The 2016–17 FAFSA has been available since Jan. 1, 2016, and the 2017–18 FAFSA will launch on Oct. 1, 2016.
There are different FAFSA deadlines for different programs:

Aid Program	Deadline Information
Federal student aid	For the 2016–17 year, you can apply between Jan. 1, 2016, and June 30, 2017. (For the 2017–18 year, you will be able to apply between Oct. 1, 2016, and June 30, 2018.) However, there are a few federal student aid programs that have limited funds, so be sure to apply as soon as you can once the FAFSA is available for the year you’ll be attending school.
State student aid	You can find state deadlines at fafsa.gov or on the paper or PDF FAFSA.
College or career school aid	Check the school’s website or contact its financial aid office. School deadlines are usually early in the year (often in February or March).
Other financial aid	Some programs other than government or school aid require that you file the FAFSA. For instance, you can’t get certain private scholarships unless you’re eligible for a Federal Pell Grant—and you can’t find out whether you’re eligible for a Pell Grant unless you file a FAFSA. If the private scholarship’s application deadline is in early to mid-January, you’ll need to submit your FAFSA before that deadline.

As you can see, it’s a good idea to file the FAFSA as soon as it’s available so you don’t miss out on anything.
You have to fill out the FAFSA^® every year you’re in school in order to stay eligible for federal student aid.

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How do I fill out the FAFSA^®?

There are several ways to file:

• Online at fafsa.gov is faster and easier than using paper.
• If you need a paper FAFSA, you can
  • download a PDF FAFSA or
  • order a paper FAFSA.
• Ask the financial aid office at your college or career school if you can file it there. Some schools will use special software to submit your FAFSA for you.               

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What happens after I fill out the FAFSA^®?

Applying isn’t the last step; your FAFSA has to be processed, and then you get an Expected Family Contribution (EFC), which your college or career school uses to figure out how much aid you can get. Find out more about what happens after you fill out the FAFSA, including how aid is calculated and when and how you’ll get your aid.

 

Do You Know about Interest rate on federal student loans?

If you receive a federal student loan, you will be required to repay that loan with interest. It is important that you understand how interest is calculated and the fees associated with your loan. Both of these factors will impact the amount you will be required to repay.

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What is interest?

Interest is money paid to the lender in exchange for borrowing money. Interest is calculated as a percentage of the unpaid principal amount (loan amount) borrowed.

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What are the interest rates for federal student loans?

The interest rate varies depending on the loan type and (for most types of federal student loans) the first disbursement date of the loan. The table below provides interest rates for Direct Loans first disbursed on or after July 1, 2016.
Perkins Loans (regardless of the first disbursement date) have a fixed interest rate of 5%.

Interest Rates for Direct Loans First Disbursed on or After July 1, 2016
Loan Type	Borrower Type	Loans first disbursed on or after 7/1/16 and before 7/1/17
Direct Subsidized Loans	Undergraduate	3.76%
Direct Unsubsidized Loans	Undergraduate	3.76%
Direct Unsubsidized Loans	Graduate or Professional	5.31%
Direct PLUS Loans	Parents and Graduate or Professional Students	6.31%

All interest rates shown in the chart above are fixed rates for the life of the loan.
Note: The interest rates for federal student loans are determined by federal law. If there are future changes to federal law that affect federal student loan interest rates, we will update this page to reflect those changes.

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Who sets interest rates for federal student loans?

Interest rates on federal student loans are set by Congress.

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How is interest calculated?

The amount of interest that accrues (accumulates) on your loan from month to month is determined by a simple daily interest formula. This formula consists of multiplying your loan balance by the number of days since the last payment times the interest rate factor.
Simple daily interest formula:
Outstanding principal balance
x number of days since last payment
x interest rate factor
= interest amount

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What is the interest rate factor?

The interest rate factor is used to calculate the amount of interest that accrues on your loan. It is determined by dividing your loan's interest rate by the number of days in the year.

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How can I determine how much of my payment will go toward my outstanding principal balance?

Your loan servicer can tell you how much of your payment is applied to your principal balance. 

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Are there any other fees for federal student loans?

Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You're responsible for repaying the entire amount you borrowed and not just the amount you received.
The chart below shows the loan fees for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after Oct. 1, 2014.

Loan Type	First Disbursement Date	Loan Fee
Direct Subsidized Loans and Direct Unsubsidized Loans	On or after 10/1/15 and before 10/1/16	1.068%
	On or after 10/1/16 and before 10/1/17	1.069%
Direct PLUS Loans	On or after 10/1/15 and before 10/1/16	4.272%
	On or after 10/1/16 and before 10/1/17	4.276%

Loans first disbursed prior to Oct. 1, 2015, have different loan fees.
There are no loan fees for Perkins Loans.

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What are the interest rates on federal student loans first disbursed before July 1, 2016?

The following table provides interest rates for Direct Loans and Federal Family Education Loan (FFEL) Program loans** first disbursed on or after July 1, 2006, and before July 1, 2016.
Perkins Loans (regardless of the first disbursement date) have a fixed interest rate of 5%.

Loan Type	Borrower Type	First Disbursement Date	Fixed Interest Rate
Direct Subsidized Loans*	Undergraduate	7/1/15–6/30/16	4.29%
		7/1/14–6/30/15	4.66%
		7/1/13–6/30/14	3.86%
		7/1/11–6/30/13	3.4%
		7/1/10–6/30/11	4.5%
		7/1/09–6/30/10	5.6%
		7/1/08–6/30/09	6.0%
		7/1/06–6/30/08	6.8%
	Graduate or Professional	7/1/06–6/30/12	6.8%
Subsidized Federal Stafford Loans**	Undergraduate	7/1/09–6/30/10	5.6%
		7/1/08–6/30/09	6.0%
		7/1/06–6/30/08	6.8%
	Graduate or Professional	7/1/06–6/30/10	6.8%
Direct Unsubsidized Loans	Undergraduate	7/1/15–6/30/16	4.29%
		7/1/14–6/30/15	4.66%
		7/1/13–6/30/14	3.86%
	Graduate or Professional	7/1/15–6/30/16	5.84%
		7/1/14–6/30/15	6.21%
		7/1/13–6/30/14	5.41%
	Undergraduate and Graduate or Professional	7/1/06–6/30/13	6.8%
Unsubsidized Federal Stafford Loans**	Undergraduate and Graduate or Professional	7/1/06–6/30/10	6.8%
Direct PLUS Loans	Parents and Graduate or Professional	7/1/15–6/30/16	6.84%
		7/1/14–6/30/15	7.21%
		7/1/13–6/30/14	6.41%
		7/1/06–6/30/13	7.9%
Federal PLUS Loans**	Parents and Graduate or Professional	7/1/06–6/30/10	8.5%

*As of July 1, 2012, graduate or professional students are no longer eligible to receive subsidized loans.
**No new FFEL Program loans have been made since July 1, 2010.
Most loans (excluding Perkins Loans) first disbursed prior to July 1, 2006, have variable interest rates that are effective from July 1 of one year through June 30 of the following year. Interest rates for these loans are not displayed on this site.

Types of federal student loans.

If you apply for financial aid, you may be offered loans as part of your school’s financial aid offer. A loan is money you borrow and must pay back with interest.

If you decide to take out a loan, make sure you understand who is making the loan and the terms and conditions of the loan. Student loans can come from the federal government or from private sources such as a bank or financial institution. Loans made by the federal government, called federal student loans, usually offer borrowers lower interest rates and have more flexible repayment options than loans from banks or other private sources.

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What types of federal student loans are available?

The U.S. Department of Education has two federal student loan programs:

• The William D. Ford Federal Direct Loan (Direct Loan) Program is the largest federal student loan program. Under this program, the U.S. Department of Education is your lender. There are four types of Direct Loans available:    
  • Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school. 
  • Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but in this case, the student does not have to demonstrate financial need to be eligible for the loan.
  • Direct PLUS Loans are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid.
  • Direct Consolidation Loans allow you to combine all of your eligible federal student loans into a single loan with a single loan servicer.
• The Federal Perkins Loan Program is a school-based loan program for undergraduates and graduate students with exceptional financial need. Under this program, the school is lender.                                                                                                                                                                                                                                                  
  If you have questions about Perkins Loan eligibility, please contact your school's financial aid office. 

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How much money can I borrow in federal student loans?

• If you are an undergraduate student: 
  • Up to $5,500 per year in Perkins Loans depending on your financial need, the amount of other aid you receive, and the availability of funds at your college or career school. 
  • $5,500 to $12,500 per year in Direct Subsidized Loans and Direct Unsubsidized Loans depending on certain factors, including your year in college.
• If you are a graduate student:
  • Up to $8,000 each year in Perkins Loans depending on your financial need, the amount of other aid you receive, and the availability of funds at your college or career school. 
  • Up to $20,500 each year in Direct Unsubsidized Loans.
  • The remainder of your college costs not covered by other financial aid in Direct PLUS Loans. Note: A credit check is required for a PLUS loan.
• If you are a parent of a dependent undergraduate student:
  • The remainder of your child’s college costs that are not covered by other financial aid. Note: A credit check is required for a parent loan (called a PLUS loan). 

Remember, you can borrow less than your school offers you.  You should only borrow what you need.

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Why should I take out federal student loans?

Federal student loans are an investment in your future. You should not be afraid to take out federal student loans, but you should be smart about it.
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 almost always lower than that on private loans—and much lower than that on a credit card!
• You don’t need a credit check or a cosigner to get most federal student loans.
• You don’t have to begin repaying your federal student loans until after you leave college or drop below half-time.
• If you demonstrate financial need, you can qualify to have the government pay your interest while you are in school.
• Federal student loans offer flexible repayment plans and options to postpone your loan payments if you’re having trouble making payments.
• If you work in certain jobs, you may be eligible to have a portion of your federal student loans forgiven if you meet certain conditions.

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What should I consider when taking out federal student loans?

Before you take out a loan, it’s important to understand that a loan is a legal obligation that you will be responsible for repaying with interest. You may not have to begin repaying your federal student loans right away, but you don’t have to wait to understand your responsibilities as a borrower.
Be a responsible borrower.

• Keep track of how much you’re borrowing. Think about how the amount of your loans will affect your future finances, and how much you can afford to repay. Your student loan payments should be only a small percentage of your salary after you graduate, so it’s important not to borrow more than you need for your school-related expenses. 
• Research starting salaries in your field. Ask your school for starting salaries of recent graduates in your field of study to get an idea of how much you are likely to earn after you graduate. You can use the U.S. Department of Labor's Occupational Outlook Handbook to estimate salaries for different careers or research employment opportunities advertised in the area where you plan to live to get an idea of a local starting salary. You also can use the Department of Labor's career search tool to research careers and view the average annual salary for each career.
• Understand the terms of your loan and keep copies of your loan documents. When you sign your promissory note, you are agreeing to repay the loan according to the terms of the note even if you don’t complete your education, can’t get a job after you complete the program, or you didn’t like the education you received.
• Make payments on time. You are required to make payments on time even if you don’t receive a bill, repayment notice, or a reminder. You must pay the full amount required by your repayment plan, as partial payments do not fulfill your obligation to repay your student loan on time.
• Keep in touch with your loan servicer. Notify your loan servicer when you graduate; withdraw from school; drop below half-time status; transfer to another school; or change your name, address, or Social Security number. You also should contact your servicer if you’re having trouble making your scheduled loan payments. Your servicer has several options available to help you keep your loan in good standing.

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How do I get a federal student loan?

To apply for a federal student loan, you must complete and submit a Free Application for Federal Student Aid (FAFSA^®). Based on the results of your FAFSA, your college or career school will send you a financial aid offer, which may include federal student loans. Your school will tell you how to accept all or a part of the loan.
Before you receive your loan funds, you will be required to

• complete entrance counseling, a tool to ensure you understand your obligation to repay the loan; and
• sign a Master Promissory Note (MPN), agreeing to the terms of the loan.

Contact the financial aid office at the school you are planning to attend for details regarding the process at your school.

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Is the U.S. Department of Education responsible for HEAL Program loans?

Yes. On July 1, 2014, the Health Education Assistance Loan (HEAL) Program was transferred from the U.S. Department of Health and Human Services (HHS) to the U.S. Department of Education (ED). However, it is no longer possible to obtain a new HEAL Program loan. The making of new HEAL Program loans was discontinued on September 30, 1998.

Before it was discontinued, the HEAL Program insured loans made by participating lenders to eligible graduate students in schools of medicine, osteopathy, dentistry, veterinary medicine, optometry, podiatry, public health, pharmacy, chiropractic, or in programs in health administration and clinical psychology. ED is responsible for managing the servicing of nondefaulted HEAL Program loans and the collection of defaulted HEAL Program loans that remain.

Getting a Student Loan USA | Differences between federal and private student loans?

When you are exploring ways to pay for college, you should consider the differences between federal and private sector loans.

When it comes to paying for college, career school, or graduate school, federal student loans offer several advantages over private student loans.

If you apply for financial aid, your school will likely include student loans as part of your financial aid package. It’s important to understand what types of loans you are offered. Generally, there are two types of student loans:

• Federal student loans: These loans are funded by the federal government.
• Private student loans: These loans are nonfederal loans, made by a lender such as a bank, credit union, state agency, or a school.

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If you need to borrow money to pay for college or career school, start with federal student loans.

Federal student loans are:

• Direct Subsidized Loans and Direct Unsubsidized Loans:

Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. The U.S. Department of Education offers eligible students at participating schools Direct Subsidized Loans and Direct Unsubsidized Loans. (Some people refer to these loans as Stafford Loans or Direct Stafford Loans.)

• Direct PLUS Loans

The U.S. Department of Education makes Direct PLUS Loans to eligible borrowers through schools participating in the Direct Loan Program.

• Here’s a quick overview of Direct PLUS Loans:
  
• The U.S. Department of Education is your lender.
• You must not have an adverse credit history.
• The maximum loan amount is the cost of attendance (determined by the school) minus any other financial aid received.

• Federal Perkins Loans.

Loans made through the Federal Perkins Loan Program, often called Perkins Loans, are low-interest federal student loans for undergraduate and graduate students with exceptional financial need.

• Here’s a quick overview of Federal Perkins Loans:
  
• Available to undergraduate, graduate, and professional students with exceptional financial need.
• Interest rate for this loan is 5%.
• Not all schools participate in the Federal Perkins Loan Program. You should check with your school's financial aid office to see if your school participates.
• Your school is the lender; you will make your payments to the school that made your loan or your school’s loan servicer.
• Funds depend on your financial need and the availability of funds at your college.

What are the differences between federal and private student loans?

Federal student loans include many benefits (such as fixed interest rates and income-driven repayment plans) not typically offered with private loans. In contrast, private loans are generally more expensive than federal student loans.
The chart below provides a summary of the differences.

Federal Student Loans	Private Student Loans
You will not have to start repaying your federal student loans until you graduate, leave school, or change your enrollment status to less than half-time.	Many private student loans require payments while you are still in school.
The interest rate is fixed and is often lower than private loans—and much lower than some credit card interest rates. View the current interest rates on federal student loans.	Private student loans can have variable interest rates, some greater than 18%. A variable rate may substantially increase the total amount you repay.
Undergraduate students with financial need will likely qualify for a subsidized loan where the government pays the interest while you are in school on at least a half-time basis.	Private student loans are not subsidized. No one pays the interest on your loan but you.
You don’t need to get a credit check for most federal student loans (except for PLUS loans). Federal student loans can help you establish a good credit record.	Private student loans may require an established credit record. The cost of a private student loan will depend on your credit score and other factors.
You won’t need a cosigner to get a federal student loan in most cases.	You may need a cosigner.
Interest may be tax deductible.	Interest may not be tax deductible.
Loans can be consolidated into a Direct Consolidation Loan.  Learn about your consolidation options.	Private student loans cannot be consolidated into a Direct Consolidation Loan.
If you are having trouble repaying your loan, you may be able to temporarily postpone or lower your payments.	Private student loans may not offer forbearance or deferment options.
There are several repayment plans, including an option to tie your monthly payment to your income.	You should check with your lender to find out about your repayment options.
There is no prepayment penalty fee.	You need to make sure there are no prepayment penalty fees.
You may be eligible to have some portion of your loans forgiven if you work in public service. Learn about our loan forgiveness programs.	It is unlikely that your lender will offer a loan forgiveness program.
	The Consumer Financial Protection Bureau's private student loan ombudsman may be able to assist you if you have concerns about your private student loan.

 

4 Things to Know Before Buying a Home | Your Best Defense: For Home

Summer is a busy time in real estate, as families try to move into their new homes before the start of school in September. If you’re buying a home, whether it’s your first or last, you’ll find that it’s a time filled with excitement and anxiety. It’s also an important time to know your rights and the legal implications of the purchase.

If you have any questions and your comfort level with legal documents is low, it’s best to hire a real estate attorney who can protect your rights and make sure that someone who isn’t benefiting from the transaction is representing your best interests. 

The most important things to consider when purchasing a home are:
Taxes: Taxes can be beneficial or a burden when it comes to home ownership. Tax credits for first-time home buyers can help you get into a home, and there are several tax deductions available to home owners. Tax law is structured to encourage home ownership, so you should seek the advice of a professional who can walk you through the facts about tax credits and home ownership.

The other side of taxes is the property tax that you’ll pay on your home. Depending on where you are purchasing, your monthly tax payment could be equal to or exceed your mortgage payment, so it’s important to do the research and understand the property taxes clearly – including how often they are increased and, on average, by what percentage.

Inspections: If you’re getting a mortgage, your lender will require an inspection so they have a complete picture of the condition of the home. Even if you’re paying cash, an inspection can protect you and give you an idea of what systems or other parts of the home might need to be repaired or replaced. No matter your situation, a professional home inspection can protect you against unforeseen or (illegally) unreported problems in your new home. Ask your realtor to recommend a licensed, experienced home inspector in your area. If you’re purchasing a home with special considerations (such as a home that’s 100+ years old), look for an inspector who specializes in that type of property and has the knowledge to catch issues that may be unique to the age or type of home.

Local Regulations: Once you own your home, local laws, historical regulations or a homeowners’ association may limit your options when it comes to home improvements. For example, if the home is in a registered historic district, you may be limited to a certain number or palette of exterior paint colors or required to ensure that all construction, including things like new windows, matches the time period in which the house was built. Homeowners’ associations may have rules about things such as pets, landscaping, holiday decorations and backyard structures.
It’s important that you know whether any of these types of restrictions will affect you in your new home, and your rights in regard to the local regulations. A real estate attorney can help guide you through these policies and rules.

Insurance: You’ll need two types of insurance when buying a home: title insurance and homeowner’s insurance. When you buy a home, you don’t just get the land and the house on top — you get title to own the property. That legal title can carry defects, like liens or easements. It’s also possible that the seller doesn’t have air, mineral, or utility rights to the property. In extreme cases, the seller may not own the property outright or at all. Only a professional title search can reveal potential problems and give you the peace of mind that you own the property free and clear. A reputable title insurance firm will offer you a policy that protects you from financial losses due to undetected errors in the title before the sale. So, if a previous owner failed to pay some taxes on a lien, you won’t be responsible for the debt.

Homeowner’s insurance is a must – your home is an investment and something that takes up a lot of time and resources, so it should be protected. If you’re getting a mortgage, at least a minimum level of hazard insurance will be required by your lender to protect their interests.
A homeowner’s insurance policy can cover everything from theft and damage to injury and premises liability. If you have a trampoline, a dock or a pool on your property, there may be different types of insurance that you have to add to be sure that your rights are covered. Talk to an attorney for advice on the best type of insurance for your property and its amenities.

Your Best Defense: For Home

If you’re purchasing or refinancing, your mortgage lender will require at least a minimal homeowner’s insurance policy to protect them in cases of unintentional damage or destruction by fire, smoke, wind, hail, theft, vandalism or another similar event. Your home is a valuable investment, so it’s best that you cover protect your own interests as well. A comprehensive homeowners’ insurance policy includes liability insurance and more complete hazard coverage than your lender likely requires.

What Homeowners’ Insurance Covers

In addition to your house, the hazard portion of a homeowners’ insurance policy will typically protect furnishings and other personal items, as well as any other structures on the property, such as a pool or separate garage (unless you use such structures for nonresidential purposes, such as for your home business).
The hazard coverage included with most policies doesn’t include business equipment, damage caused by natural disasters, or loss of art or jewelry over a certain amount. You should review your options and explore purchasing additional coverage rider(s) if your house is in a high-risk area for fire, floods, earthquakes, or other natural disasters or if you have expensive art, jewelry or business equipment at home.
Standard homeowners’ policies also cover some types of personal and property liability – for example, if your mail carrier trips over your child’s bike and breaks her wrist, your policy will pay for her medical expenses and other losses, up to a certain limit. In fact, the damage doesn’t have to have occurred at your home. If your child puts a baseball through the neighbor’s window or writes his name in your neighbor’s freshly poured sidewalk, those damages should also be covered. Unlike hazard insurance, this portion isn’t required by your lender — but is a good idea, since you don’t want to lose your house to pay someone’s medical or repair bills.

Keep Insurance Claims to a Minimum

Yes, many of the things we just described are covered but, a word to the wise – it’s best to not make small claims on your policy just because they’re covered. Just a few claims can cause your rates to rise, so take the time to evaluate your options. For example, repairing your neighbor’s window may be cheaper in the long run then filing a claim that may result in an increase in your rate and/or deductible.