Type of interest rate, terms and fees ??

Re: Type of interest rate, terms and fees ??

Thanks for the information Jasmine, do you represent a bank or loan management firm? If yes, please share the link, i really liked your ideas.

Joe Forest

Re: Type of interest rate, terms and fees ??

Hello friends

The types of interest rate, terms and fees
* Interest
o For loans disbursed after July 1, 2006:
+ 6.8% fixed rate for all loan statuses
o For loans disbursed prior to July 1, 2006:
+ Interest rate is variable and changes every July 1 based on the 91-day U.S. Treasury Bill. The interest rate is capped at 8.25%. For loan statuses of In-School, Grace and Deferment, the interest rate is the 91-day T-Bill rate plus 1.7%, which is 3.61% for the period July 1, 2008- June 30, 2009 and for loan statuses of Forbearance and Repayment, the interest rate is the 91-day T-Bill rate plus 2.3%, which is 4.21% for the period July 1, 2008- June 30, 2009.
o Interest does not accrue on Subsidized Stafford or Direct Subsidized loans during in-school, grace, and deferment periods. Interest accrues on Unsubsidized Stafford and Direct Unsubsidized loans immediately upon disbursement.
* Fees
o For 2009-2010, Direct Subsidized and Unsubsidized loans have a .5% origination fee so, for example, if you borrowed $10,000 your disbursement would be $10,000 - ($10,000 x .5%) or $9,950. You would still be responsible to repay $10,000 plus the interest associated with the $10,000 you borrowed.
* Disbursements
o Disbursements must be made in 2 equal payments over the length of the academic year. Borrowers should expect to receive one-half of loan proceeds at the start of the fall term and the second half at the start of the spring term.
* Repayment
o Begins after a 6-month grace period from when you cease at least half-time enrollment
o An Income-Based Repayment Plan can be used during residency or repayment and can be postponed during residency using forbearance
o Standard repayment length is 10 years from date first payment is due; can be extended for some borrowers to 25 years
* Eligibility
o The financial aid office determines eligibility for the Direct Subsidized Stafford loan based on your Expected Family Contribution (EFC) from the FAFSA and your annual Cost of Attendance. There are annual and aggregate limits for Direct Subsidized and Unsubsidized loans.

Thanks to all