Terms of Use

Before borrowing, always maximize scholarships and grants via FastWeb.com or CollegeBoard.org. For 2026, many students are also utilizing the TEACH Grant ($4,000/year) if they plan to teach in high-need fields.

1. Federal Direct Stafford Loans (Undergraduate)

Stafford loans remain the safest option because they are fixed-rate and do not require a credit check or co-signer.

• Current Rates (2025-2026): The subsidized and unsubsidized rate is 6.39%. (The old rates of 3.4% or 6.8% are no longer in effect).
• Subsidized: The government pays the interest while you are in school.
• Unsubsidized: Interest begins accruing immediately upon disbursement.
• Grace Period: You still have 6 months after graduation before payments begin.

2. New Borrowing Limits (Effective July 1, 2026)

New annual and lifetime caps apply to all federal loans:

• Undergraduates: Limits remain tiered by year (e.g., $5,500 for freshmen), but Parent PLUS loans are now capped at **$20,000 per year** per student.
• Graduate Students: Annual limits are **$20,500** ($50,000 for specific professional programs like Medical or Law).
• Lifetime Cap: There is a new total aggregate lifetime limit of **$257,500** for all federal student loans combined.

3. The 2026 Repayment Revolution

4. Private Loans

Private loans should be your last resort. In 2026, they are often used to bridge the "funding gap" created by the new $20,000 cap on Parent PLUS loans.

• Variable Rates: Unlike federal loans, private rates are often variable and can exceed 15% depending on your credit score.
• No Consolidation: You cannot consolidate private loans into a Federal Direct Consolidation Loan.

5. Official Contacts

• Federal Student Aid: 1-800-4-FED-AID or StudentAid.gov.
• FAFSA: Always file at fafsa.gov. In 2026, the form is significantly shorter due to the "Direct Data Exchange" with the IRS.