As most of you know, I am a student at Missouri State University. At MSU our student emails have already indicated that FAFSAs have been received and our school has given us our financial aid offerings for the 2012-2013 school year. When scholarships and state and federal grants just won’t cover everything, several students turn to loans to pick up the slack. But what are the best options for the student federal loans offered? I thought this Thursday we could talk a little about subsidized vs. unsubsidized student loans.
In order to qualify and receive government-backed financial aid like subsidized or unsubsidized loans, students must fill out the Free Application for Federal Student Aid (FAFSA) annually. The FAFSA requires you to submit information about your financial resources and, if you are a dependent, the financial resources of your family.
Stafford Subsidized Loans are federally guaranteed loans based on financial need. Interest does not accrue on the loan while you are in school at least half time. The federal government "subsidizes" (or pays) the interest. Additionally, there are maximum amounts you can receive per school year:
· Freshman: $3,500 per year
· Sophomore: $4,500 per year
· Junior: $5,500 per year
· Senior and 5th year: $5,500 per year
Stafford arUnsubsidized Loans are federally guaranteed loans that are not based on financial need. Interest does accrue from the time the loan is disbursed to the school. Additionally, there are maximum amounts you can receive per school year for dependent and independent students:
· Freshman: $2,000 for dependent students, $6,000 for independent students
· Sophomore: $2,000 for dependent students, $6,000 for independent students
· Junior: $2,000 for dependent students, $7,000 for independent students
· Senior and 5th year: $2,000 for dependent students, $7,000 for independent students
As a student, you may be offered either one of these loan types or both. You may also be offered Perkins or Plus Loans. For more information on these federal loan types, check out this link: http://www.ehow.com/about_5410853_subsidized-loans-vs-unsubsidized.html
Systematic Savings Bank does not currently offer student loans, but if you have any questions about our student checking or other forms of loans, we’d be more than happy to help you find the answers. Member FDIC.
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