The federal government sets loan limits and interest rates, but each state is free to set its own additional limitations, within federal guidelines. This agency is the best source of information on Stafford and PLUS loans in your state. 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.
Some schools are also lenders.
A process of reviewing a student's aid application to determine the amount of financial aid a student is eligible for. Completing a needs analysis form is the required first step in applying for most types of financial aid. New borrowers may be subject to different regulations than borrowers who have existing loan balances. For undergraduate students, first baccalaureate degree only. Eligibility is based on federal methodology.