Both subsidized and unsubsidized loans are guaranteed by the U.S. Department of Education either directly or through guaranty agencies. Nearly all students are eligible to receive federal loans (regardless of credit score or other financial issues). Both types offer a grace period of six months, which means that no payments are due until six months after graduation or after the borrower becomes a less-than-half-time student without graduating. Both types have a fairly modest annual limit.

The dependent undergraduate limit effective for loans disbursed on or after July 1, 2024 is as follows (combined subsidized and unsubsidized limits): $5,500 per year for freshman undergraduate students, $6,500 for sophomore undergraduates, and $7,500 per year for junior and senior undergraduate students, as well as students enrolled in teacher certification or preparatory coursework for graduate programs. For independent undergraduates, the limits (combined subsidized and unsubsidized) effective for loans disbursed on or after July 1, 2024 are higher: $9,500 per year for freshman undergraduate students, $10,500 for sophomore undergraduates, and $12,500 per year for junior and senior undergraduate students, as well as students enrolled in teacher certification or preparatory coursework for graduate programs. Subsidized federal student loans are only offered to students with a demonstrated financial need.

Financial need may vary from school to school. For these loans, the federal government makes interest payments while the student is in college. For example, those who borrow $10,000 during college will owe $10,000 upon graduation.

Be sure to look for us on your favorite networks:

Visit Our Bookstore for Great Values!

101 Tips Every Job Seeker Should Know	The Ultimate Online Job Seekers eBook	10 Biggest Interview Mistakes	10 Biggest Resume Mistakes

Check out these hot articles!

This makes us laugh… every time we see it	The First Step to a Job You Love	Palestinian Traffic Cop Loves His Job	Beef up your email signature

Higher Learning Leads to Higher Earnings, Especially for Men [InfoGraphic	How to Ace the Interview BEFORE it Starts	Video Resume – May Work Wonders, But Not for Everybody	How to Develop All Star Job References

This entry was posted on Tuesday, April 12th, 2011 at 8:24 am and is filed under Education, InfoGraphic. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.