Interest accrues while the student is enrolled in school and the student has the option of paying the interest payments or letting the interest payments be added to the loan amount. Loan principal payments are deferred as long as a student is enrolled at least half time. Borrowers pay a 3 percent origination fee which is deducted from each disbursement. Repayment of the loan plus interest begins six months after the student ceases to be enrolled at least half time. This is not based on financial need.
Interest is charged from the time the loan is disbursed until it is paid in full.
The amounts given above are the maximum yearly mounts you can borrow in both subsidized loans. You may receive less than these yearly maximum amounts if you receive other financial aid that is used to cover a portion of your cost of attendance. The graduate dept limit includes and Stafford Loans received for undergraduate study.