:max_bytes(150000):strip_icc()/nelnet-logo-5aa1b57bb6564e36a95fd5cfe3a3d842.jpg){kind=logo}
Who Can Get Federal Student Loans
Federal student aid is available to anyone enrolled in a community college, career school, or four-year institution. Examples of such aid include:
- Grants, which don’t need to be paid back;
- Work-study, a type of part-time employment that enables students to make money while attending classes; and
- Federal student loans
Most federal aid is decided based on financial need. To be eligible, students must complete the FAFSA® and fulfill a number of additional prerequisites.
Federal PLUS Loans, which are federal student loans, are also available to parents. These loans may also be used to cover the cost of the student’s education.
| for Loans Disbursed Between July 1, 2023 and June 30, 2024 | |||||
| Direct Loan for Dependent Undergraduates | Direct Loan for Independent Undergraduates | Direct Loan for Graduates | Direct Parent PLUS | Direct GradPLUS | |
|---|---|---|---|---|---|
| Subsidized Interest Rate (new loans) | 5.50% | 5.50% | N/A | N/A | N/A |
| Unsubsidized Interest Rate (new loans) | 5.50% | 5.50% | 7.05% | 8.05% | 8.05% |
| Credit Check? | No | No | No | Yes | Yes |
| Loan Limit 1st Year | $5,500 1, $3,500 2 | $9,500 1, $3,500 2 | $20,500 1, $8,500 2 | None | None |
| Loan Limit 2nd Year | $6,500 1, $4,500 2 | $10,500 1, $4,500 2 | $20,500 1, $8,500 2 | None | None |
| Loan Limit 3rd Year and Beyond | $7,500 1, $5,500 2 | $12,500 1, $5,500 2 | $20,500 1, $8,500 2 | None | None |
| Demonstrate Financial Need? | Yes – subsidized, No – unsubsidized | Yes – subsidized, No – unsubsidized | Yes – subsidized, No – unsubsidized | No | No |
Limit of combined subsidized and unsubsidized funds. Further unsubsidized eligibility is accessible for students whose parents are not able to secure a PLUS loan. back.
After work-study, grants, and scholarships have been exhausted, Direct Stafford Loans are usually the first kind of loan taken out.
There are two types of Stafford Loans: subsidized and unsubsidized.
While you are still enrolled in school, the government pays the interest on subsidized loans.
While you are enrolled in classes, you are in charge of paying the interest that accumulates on unsubsidized loans. When you graduate or cease to be a half-time student, the interest will be capitalized and added to your principal balance.
For Nelnet account numbers starting with “E,” payments made when you enter a repayment status will be applied to any unpaid interest and subsequently to the remaining principal balance if you haven’t paid on the interest while attending school (and haven’t previously been in a repayment status [when payments are due]).
For Nelnet account numbers starting with “D” or “J,” the interest will be capitalized and added to your principal balance upon graduation or dropping below half-time status if you do not pay it back while enrolled in school (regardless of prior repayment status). Visit our Interest Capitalization page to learn more about interest capitalization.
Benefits: Generous borrowing limits based on years in school and degree status, and no payments required while enrolled at least half-time
Almost all students are qualified for a Stafford Loan, regardless of their credit history. The results of the FAFSA determine the borrower’s financial need, which determines whether the loan is subsidized or not.
Loan limits: The amount of a Stafford loan rises with each academic year you attend. See the chart above for details.
Direct PLUS Loans for Parents
Parents may decide to take out loans to help cover some of the costs associated with their children’s higher education.
Benefits: PLUS loans can assist in paying for educational costs that are not covered by federal student aid. Furthermore, parents are able to postpone loan payments until after the student graduates. Parents do not need to show financial need in order to apply for these loans because they are not need-based.
Eligibility: Eligibility depends on a modest credit check. If the borrower has bad credit, an endorser might be needed. Before a PLUS loan can be granted, some schools require the FAFSA to be completed, but others do not.
GradPLUS Loans for Graduate and Professional Students
Only students pursuing graduate or professional degrees are eligible for this loan.
Benefits: This loan can cover the full cost of tuition and other education-related expenses, less any other aid granted. Payments can be delayed until after graduation, making it comparable to the parent PLUS loan.
Eligibility: This kind of loan requires a minimal credit check. If the borrower has bad credit, an endorser might be needed.
Students must complete the FAFSA as soon as possible after January 1 of each year they intend to attend school in order to be eligible for federal financial aid.
Parents can apply for a PLUS loan by completing a Direct PLUS Loan application and Master Promissory Note (MPN), and the schools financial aid office can provide additional instructions. The office may also offer the option of completing the PLUS application and MPN online at StudentAid.gov.
Student Loan Servicers (Customer Service)
A loan servicer is tasked with managing your student loan after you have taken one out. In addition to processing your payments and assisting you with loan repayment, the servicer also responds to inquiries you may have regarding your student loan account.
Nelnet offers customer support for Department of Education federal student loans as well as for other lenders, and we are pleased to assist in any manner we can.
FAQ
Do Nelnet loans qualify for loan forgiveness?
Under federal programs from the U.S. government, Nelnet borrowers may be eligible for Nelnet student loan forgiveness. S. Department of Education. These are the options for federal borrowers regarding forgiveness or cancellation.
Is Nelnet federal or private loan?
Nelnet is a federal student loan servicer. It indicates that the organization has a close relationship with the US Department of Education.
Did Nelnet take over federal student loans?
On or around October 28, 2021, FedLoan Servicing will start transferring loans to Nelnet. Multiple transfers will take place through June 2022. Before their loan(s) are transferred, borrowers will be informed at least two weeks in advance.
How do I know if my student loans are federal loans?
You can view a list of all federal student loans in your name by logging into the Federal Student Aid website with your FSA ID if you’re unsure if your student loans are federal. You can look up “My Loan Servicers” on your account dashboard or visit the National Student Loan Program System.
Read More :
https://nelnet.com/federal-student-loans-101
https://nelnet.com/