College Loans  - Federal Subsidized Stafford Loans

By: K.W. Abbott

Federal Subsidized Stafford Loans are fixed rate, need-based loans.  A student can borrow $3,500.00 for their freshman year, $4,500.00 for their sophomore year and $5,500.00 for their junior, year, senior and higher years. The interest is paid (subsidized) by the federal government until 6 months after the student leaves college.  Stafford loans carry both life and disability insurance on the student.  If the student dies or becomes disabled the loan balance is forgiven.  These loans are in the student's name and the student will be entitled to the student loan interest tax deduction.  If the loan is eligible to be bought by Sallie Mae and the student makes the first 48 payments on time, the interest rate will drop 2%.



                                                              National Institute of Certified College Planners, LLC