What are the terms of a Federal Subsidized and Unsubsidized Stafford Loan?

These loans carry a variable interest rate with an 8.25% cap. The Subsidized loan’s interest is paid by the government throughout the time you are in school until six months after you leave or drop below half time enrollment. The Unsubsidized Stafford Loan’s interest begins to accrue 60 days after the check is sent to Montreat College by the lender.

There is an option to pay on this interest while in school. For both loans there is an origination and guarantee fee, which is taken out of the proceeds of the loan by the lender and is equal to 4% of your total loan amount requested. More.

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