The federal government sets loan limits and interest rates, but each state is free to set its own additional guidelines, within federal regulations. This agency is the best source of information on Stafford and PLUS loans in your state. In Colorado, this agency is the Colorado Student Loan Program, 294-5050. An insurance premium deducted from the borrower's loan proceeds prior to disbursement and paid to the guaranty agency that insures the loan. A fee charged for the use of borrowed money.
Interest is calculated as a percentage of the principal loan amount.
A process of reviewing a student's aid application to determine the amount of financial aid a student is eligible for. New borrowers may be subject to different regulations than borrowers who have existing loan balances. A federal grant program for first-time undergraduates with financial need. The amount borrowed. Interest is charged on this amount, and guaranty and origination fees will be deducted prior to disbursement.