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May 4, 2007, Newsletter Issue #15: Subsidized and Unsubsidized Federal Student Loans
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Tip of the Week
Financial need for students is determined by subtracting the expected family contribution (EFC) from the cost of attendance. The amount that remains is what you still need to cover your educational costs. Those students who demonstrate financial need are eligible to receive a subsidized Stafford student loan. This loan carries a competitive interest rate and the student is not required to make any payments while they remain in school. As long as the repayment period has not begun, the federal government will pay any interest that accrues on the loan until you begin the repayment period.
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