Type of Loan

Federally sponsored loan for graduate students enrolled at least half-time at an eligible graduate school.

Borrower Eligibility

Requires a basic credit check. Is not dependent on income or assets. Collateral and/or co-borrower is not required.

Loan Limits

Borrow up to the total cost of education, minus financial aid received.

Interest Rates

For loans issued beginning 7/1/2006, the interest rate is fixed at 8.5%.

Fees

A 3% origination fee and a 1% default fee are deducted from your loan disbursement.

Disbursement Timing

Multiple disbursements are made directly to the school. Disbursement schedules typically align with school terms or semesters.

Repayment Start Date

Payments are deferred until after the student leaves school or drops below half time attendance and are typically scheduled to begin at the same time as the student's outstanding Student Loan Funding Stafford loans. Interest accrues during this period and will be added to the principal balance when repayment begins.

Repayment Term

Monthly payments are scheduled over 10 years, with a $50 minimum payment. Loans may be prepaid without penalty.

Repayment Options

Multiple, flexible repayment options are available including standard repayment, graduated repayment, income-sensitive repayment, and extended repayment.

Borrower Benefits*

0.25 percentage point interest rate reduction for automatic debit

Additional Information

Student Loan Funding adjusts the borrower's repayment date to align with his or her Federal Stafford Loan repayment date.