There are annual and lifetime limits for Direct Subsidized and Unsubsidized loans, however, so students might not be able to cover the full cost of college with these federal loan options.
Once a student reaches the limit on Direct Subsidized and Unsubsidized Loans, in most cases they can access Direct Grad PLUS and Parent PLUS Loans.
2. Private Student Loan Options
Private student loans have different terms depending on the lender. Unlike federal student loans, private student loans typically require applicants to pass a credit and income review to verify that they will be able to repay the loan.
Because most students don’t yet have enough credit history or steady income to qualify on their own, private student loans are often cosigned by someone like a parent or guardian who can meet the criteria and take equal responsibility for repayment. The loan will appear on the credit bureau report for both parties the student and the cosigner.
Our credit pre-qualification tool allows borrowers or cosigners to find out if their credit qualifies them for a loan, and what interest rates they can expect.
- Learn more about the difference between federal vs. private student loans.
- Learn more about cosigners for private student loans.
Another popular question brought up when on the topic of student loans is How are student loans paid out?. Repayment terms on student loans vary based on the type of loan. Federal student loans are often designed to be paid off within 10 years, whereas private student loans might differ based on the lender’s terms. Continuar leyendo