If you have already filed the FAFSA, you should check with your financial aid office to see if there is additional paperwork that you must submit to obtain a federal loan.
Subsidized loans are always federal student loans. Private student loans are not subsidized. If you take out a private student loan, you are responsible for all interest, including interest that is charged while you are in school. Searches are limited to 50 characters. Please do not share any personally identifiable information PII , including, but not limited to: your name, address, phone number, email address, Social Security number, account information, or any other information of a sensitive nature.
To see examples of how your Subsidized or Unsubsidized award amount will be determined. If you are a first-time borrower on or after July 1, , there is a limit on the maximum period of time measured in academic years that you can receive Direct Subsidized Loans.
If this limit applies to you, you may not receive Direct Subsidized Loans for more than percent of the published length of your program. Alberta Gator is a first year dependent undergraduate student. She is, however, eligible for an Unsubsidized Loan. The amount you can borrow through the Federal Direct Loan Program is determined by your dependency status and classification in college. The annual and aggregate loan limits are listed in the charts below. Your college will apply the loan funds to your school account to cover education-related costs such as tuition, fees, and room and board.
If any money is left over after that, it will be returned to you, with the stipulation that you must use it for education expenses. Are There Fees for a Subsidized Loan? Federal subsidized loans do come with some fees. You'll pay a loan fee based on a percentage of the loan amount, which is deducted from each payout. According to the most recent data, loans disbursed on or after October 1, , and before October 1, , had a loan fee of 1.
Just like with any loan, you'll also pay interest in exchange for borrowing money. The interest rate on subsidized loans disbursed on or after July 1, , and before July 1, , is 4. With subsidized student loans, as long as you're in school at least half time, you don't owe anything on your loans.
After you leave school, your loan servicer will contact you and let you know when your first payment is due and how to pay. It's best to start paying the loans back as soon as possible and pay more than the minimum if you can. If you make minimum payments, it can take many years to be free of your loans. If you're able to contribute more, you'll be done with them sooner—and you can reduce the overall cost of the loan since you won't be paying interest as long.
If you want to make a larger payment, let your loan servicer know you want that extra amount applied to the current month's payment so they don't inadvertently add it to the next month's payment. Some students aren't able to get by on subsidized loans alone and have to also take out unsubsidized federal loans or private loans.
If you have multiple student loans, determine which have the largest balances and the highest interest rates. Anytime you are able to pay more than the minimum, put that extra money toward these more expensive loans since it will save you the most money over time. Also, be aware that federal loans have several different repayment plans to choose from.
While yours may come with one automatically, you can change plans for free at any time. Contact your loan servicer to find out which plan would work best for you or to change your plan. Extra Credit Taking out student loans can help you establish credit history, and making on-time loan repayments can improve your credit over time.
Keeping an eye on your credit report, such as through Experian's free credit monitoring service , will help you track your progress as you pay back your loan, and will alert you to any changes in your credit file. The purpose of this question submission tool is to provide general education on credit reporting. The Ask Experian team cannot respond to each question individually. However, if your question is of interest to a wide audience of consumers, the Experian team may include it in a future post and may also share responses in its social media outreach.
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