Facts about consolidating student loans
Student loans come in many shapes and sizes, and the regulations for them can be different as well.There are several types for which you may be eligible.The government pays your interest for you while you’re in school.Subsidized loans are reserved for students who can demonstrate a financial hardship.
There were 21 million students enrolled in colleges and universities in the fall of 2016 and eight million of them received federal loans from the William D. The students took in 6.3 billion in loans, or about ,040 per student. Ford Federal Direct Loan Program includes Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans and Direct Consolidation Loans.
If you have an unsubsidized loan, you’re responsible for paying off all the interest.
In 2017, interest rates were fixed at 3.76% while you’re in school, but payments are typically deferred — or postponed — until after you graduate. Your annual Stafford Loan limit for unsubsidized loans ranges from ,500 to ,500, depending on your year in school and whether you are claimed as a dependent on someone’s tax return.
If you’re a medical student, you have the highest limits.
You may borrow up to ,500 annually and 4,000 in total.