Both subsidized and unsubsidized federal student loans have annual loan limits and aggregate loan limits. These limits may mean that you need to take out additional loans from a private lender in order to pay the full cost of attendance.
Annual loan limits, or the total amount you can borrow per year, depend on your grade level, as well as whether you’re a dependent or independent student. Independent students can typically take out more federal student loans than dependent students.
Aggregate loan limits, or the cumulative loan amount you can owe at any given time, change based on your program (undergraduate, graduate, and professional), as well as whether or not you’re a dependent or independent student.
Borrowing limits: Undergraduate & graduate/professional students
After you graduate, or drop below half-time enrollment, you must start paying the government back for your loans. Typically, federal loans allow a six-month grace period after you leave school before you have to start making monthly payments.
It’s important to note that interest may accrue during your grace period. If you’re able to start making payments before the grace period has expired, you’ll save yourself money on the life of the loan.
Get in touch with your student loan servicer to find out more about your loan repayment plans and other repayment options.
How do you apply for a federal student loan?
You apply for a subsidized or unsubsidized federal student loan the same way: Simply fill out the Free Application for Federal Student Aid (FAFSA) . Continue reading “Federal student loan repayment: When do you have to start paying back?”