which loan is better the Federal Direct Subsidized Loan to meet need or the Federal Perkins Loan?
November 8, 2010 by admin
Filed under Student loans
these are the terms
William D. Ford Federal Direct Subsidized Loan to meet need :
The William D. Ford Federal Direct Loan program is available to undergraduate, graduate, and medical students based on financial aid eligibility. The federal government will pay interest on this loan while you are enrolled in college at least half-time. The application will not be processed through a bank, but rather through UCI and the U. S. Department of Education. The guarantee and origination fee will be deducted from the loan amount you borrow. You will be charged a 2. 0-percent origination fee. A rebate of 1. 5 percent of the loan amount will be included in each disbursement.
If you advance a grade level during the academic year you may be eligible for a higher maximum annual loan limit. Otherwise, you must wait until the period of time equal to an academic year elapses to borrow again under the William D. Ford Federal Direct Student loan Programs (subsidized and unsubsidized).
Interest Rates are
fixed at 6. 0 percent.
the second loan is:
Federal Perkins Loan
The Federal Perkins Loan is a long-term federal loan for students who demonstrate financial aid eligibility. Cumulative totals for the full term of college attendance may not exceed $20,000 for undergraduates and $40,000 for graduate students.
Interest rate 5 percent per year during repayment
Deferment period before repayment Information regarding deferments will be provided at your exit interview.
Also, you may refer to your promissory note for the information.
Full repayment up to 10 years
Minimum payment $120 per quarter
If you are thinking about getting a loan, then you should know about the basics before you get started. If you understand the basic dos and don’ts of loans, then you will be better equipped to find the best loan for your needs. Whatever type of loan you are applying for, you should follow these basic rules to help you find the best deal