Consolidating ffelp loans into direct 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. (Some people refer to these loans as Stafford Loans or Direct Stafford Loans.) What’s the difference between Direct Subsidized Loans and Direct Unsubsidized Loans? Other than interest, is there a charge for this loan? Generally, you must also be enrolled in a program that leads to a degree or certificate awarded by the school. Department of Education offers eligible students at participating schools Direct Subsidized Loans and Direct Unsubsidized Loans. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your Program.Am I eligible for a Direct Subsidized Loan or a Direct Unsubsidized Loan? What additional steps must I take to receive my loan? Direct Subsidized Loans are available only to undergraduate students who have financial need.Is there a time limit on how long I can receive loans? Direct Unsubsidized Loans are available to both undergraduates and graduate or professional degree students. *Note: If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period.
If you are enrolled in a two-year program, the maximum period for which you can receive Direct Subsidized Loans is three years (150 percent of 2 years = 3 years).Because your maximum eligibility period is based on the length of your current program of study, your maximum eligibility period can change if you change to a program that has a different length.Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count toward your new maximum eligibility period.Certain types of enrollment may cause you to become responsible for the interest that accrues on your Direct Subsidized Loans when the U. Department of Education usually would have paid it. I transferred into the shorter program and lost eligibility for Direct Subsidized Loans because I have received Direct Subsidized Loans for a period that equals or exceeds my new, lower maximum eligibility period, which is based on the length of the new program? However, there are limits on the amount in subsidized and unsubsidized loans that you may be eligible to receive each academic year (annual loan limits) and the total amounts that you may borrow for undergraduate and graduate study (aggregate loan limits).