The current interest rate is 5 percent, and repayment follows the same pattern as the Federal Stafford Loan, except that repayment begins nine months after you graduate or withdraw from at least half-time study. Even if you are not eligible for either the subsidized Federal Stafford Loan or the Federal Perkins Loan, you may borrow from the unsubsidized Federal Stafford Loan program. These loans provide additional funds for students who do not show financial need. They carry the same interest rate as the subsidized Federal Stafford Loans but the student is responsible for the interest on the loan that accrues while he or she is in college. The interest rate is variable and is capped at 9 percent.
Payments begin within sixty days after funds are disbursed.
The repayment period can last up to ten years and parents may borrow up to the total cost of education per year per child in college. The University of Chicago offers loans to qualifying parents of undergraduates and to students with a qualifying cosigner. Eligibility for this loan is contingent upon a favorable credit rating for parents, as well as for cosigners. One of the repayment options a family may elect is to repay only the interest while the student is in the College and begin repayment of the principal when the student graduates.