<p>Is there still a standard Federal student loan available for all college students? (25 years ago it was called a Guaranteed Student Loan and was for $10,000/year, which you then paid back upon graduation…)</p>
<p>If so, does one need to file the FAFSA to qualify for that?</p>
<p>Thanks!</p>
<p>They are called “subsidized student loans” now, and you need to meet certain income guidelines to get them. And, yes, filing the FAFSA is how you do it. The subsidized ones do not accumulate interest while you’re in school. There are unsubsidized federal loans anyone can get if they file the FAFSA Those will accumulate interest, but you don’t have to pay them back until you’re finished with school. They cap at much less than 10K a year now though.</p>
<p>For a dependent student the Stafford maximums are </p>
<p>Freshman: $5500 of which up to $3500 may be subsidized
Sophomore: $6500 of which up to $4500 may be subsidized
3rd year and beyond (undergrad): $7500 of which up to $5500 may be subsidized.
Aggregate limit for a dependent undergrad student is $31,000.
A dependent student whose parents are denied a PLUS loan are eligible for an additional $4000 unsub a year with the aggregate limit being $57,500.</p>
<p>Interest rate for 2009-2010 for subsidized is 5.6% (which govt pays till you graduate or drop below half time plus a 6 month grace period). For unsub it is 6.8%. As 'rent said - subsidized is awarded if there is need. Unsub if there is not. Or a combo of the 2. FAFSA is required.</p>
<p>There are different limits for independent/grad&professional/medical students.</p>