The loan has no income cut-off or credit requirements. This means that the federal government will pay for the interest on the loan while the student attends college. Repayment on the loan begins six months after graduation or termination of half-time status. An Unsubsidized Federal Direct Stafford Loan does not have a federal interest subsidy, and interest accrues to the account from the time the loan is paid to the student s account. The loan servicer will bill the student for the interest quarterly, and while enrolled at least half-time the student may opt to have the interest capitalized or added onto the principal of the loan.
PLUS loans are available for parents or step-parents of all dependent undergraduate students.
The maximum amount of eligibility is determined by the cost of attendance minus other financial aid. Parents who have no adverse credit history are eligible for PLUS loans. Repayment on PLUS begins 60 days after the 2nd disbursement of the loan. This State grant is awarded to New York State residents who are in full-time attendance at colleges or universities located in the state of New York. The maximum amount of the TAP award for 2001-2002 has not yet been determined.