FEDERAL LOANS - STAFFORD & GRAD PLUS LOAN TERMS
- We need to remind you that your federal loans are just that – loans, and they must be repaid.
- Federal Stafford and Graduate PLUS Loans can be borrowed from two major federal student loan programs: the Federal Family Education Loan Program (FFEL or FFELP) or from the Federal Direct Loan Program (issued by the U.S. Department of Education). Fordham participates in the FFEL Program. You received your Federal loans through banks or other lending institutions such as Sallie Mae or Access Group but the loans are guaranteed by the Federal Government.
- Stafford Loans have a fixed interest rate of 6.8%. Before the 2006-07 academic year, the interest rate was variable. Currently, the variable rate is 1.88% in school, during the grace period and in deferment and 2.48% in repayment.)
- With Stafford Loans, there's a 6-month grace period before repayment is due.
- Graduate PLUS Loans, available since the 2006-2007 academic year, have a fixed rate of 8.5%.
- With Grad PLUS Loans, technically there is no grace period, but ask your lender about forbearance; usually it will be granted so that you can align the start of repayment with your Stafford Loans.
- With both federal loans, the standard repayment period is 10 years and there are no pre-payment penalties if you choose to repay your loans earlier than 10 years.
- These loans have several repayment options.
