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A Grad PLUS Loan is credit-based. If your credit isnt strong, you will need an endorser to cosign it. Unlike other federal direct student loans, theres no borrowing limitits up to your grad schools cost of attendance. The interest rate for a Grad PLUS Loan is higher than for a direct unsubsidized loan.
Subsidized Loans are loans for undergraduate students with financial need, as determined by your cost of attendance minus expected family contribution and other financial aid (such as grants or scholarships). Subsidized Loans do not accrue interest while you are in school at least half-time or during deferment periods.
Unsubsidized direct loans come with docHubly lower interest rates and origination fees. But the amount you can borrow each year is limited to $20,500. Graduate PLUS loans, on the other hand, let you borrow up to the cost of attendance, which is determined individually by schools.
You must submit the Free Application for Federal Student Aid, also known as the FAFSA, to determine your familys eligibility for need-based financial aid. The information you include on the FAFSA is used to calculate your expected family contribution, which will factor into your award.
The financial aid office at the college or career school you will attend will determine how much financial aid youre eligible to receive. Your eligibility depends on your Expected Family Contribution, year in school, enrollment status, and the cost of attendance at the school youll be attending.

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Key Takeaways. Most families are eligible for some form of federal financial aid for college. Students with exceptional financial need may be eligible for federal grants and subsidized loans. Other students and parents may be eligible for non-need-based aid, such as unsubsidized federal loans.
Direct PLUS loans are federal loans that graduate or professional degree students or parents of dependent undergraduate students can use to help pay for education expenses. Direct PLUS loans have a fixed interest rate and are not subsidized, which means that interest accrues while the student is enrolled in school.
Con: Student Loans Can Penalize You for Late Payments Missing payments on student loans will result in penalties. Some of these penalties include added interest, higher fees, or even wage garnishment. As mentioned above, this also affects your credit score, having a rippling effect on big purchases you plan to make.

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