Both students and parents may borrow funds. Some loans accrue interest while the student is in school, but generally repayment of the principle begins after graduation. Repayment of principal is not required until six months after enrollment drops below half-time. The government pays the interest during enrollment periods. Repayment of principle is not required until six months after enrollment drops below half-time.
Interest is charged from the time the loan is disbursed.
If students allow the interest to accumulate during the loan period, it will be capitalized and added to the principal. Only independent students are eligible for extended unsubsidized loans. The loan limits are federal maximums. However, you may receive less than the maximum based on institutional budgets and if you receive other financial aid. Interest rates on student loans are variable, but will not exceed 8.25 percent.