Understanding the Subsidized & Unsubsidized Federal Direct Student loans & Parent Plus Loans
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- เผยแพร่เมื่อ 11 ก.ค. 2020
- This video is about the Subsidized & Unsubsidized Federal Direct Student loans and the Federal Parent Plus Loans. We discuss the Subsidized and Unsubsidized Federal Student loans from completing the Fafsa form. We also go into detail about the Parent Plus Loan. All to help you understand the process and help pay for the college cost.
We discuss where to complete the paperwork on studentloans.gov and what forms you need to complete like the master promissory note and the Entrance Counseling paper work on studentloans.gov to get the $5,500 federal student direct Subsidized & Unsubsidized Federal Direct Student loans. Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. A PLUS Loan is a student loan, which is part of the Federal Direct Student Loan Program, offered to parents of students enrolled at least half time, or graduate and professional students, at participating and eligible post-secondary institutions.The U.S. Department of Education offers eligible students at participating schools Direct Subsidized Loans and Direct Unsubsidized Loans. (Some people refer to these loans as Stafford Loans or Direct Stafford Loans.) To receive either type of loan, you must be enrolled at least half-time at a school that participates in the Direct Loan Program. Generally, you must also be enrolled in a program that leads to a degree or certificate awarded by the school. Direct Subsidized Loans are available only to undergraduate students who have financial need. Direct Unsubsidized Loans are available to both undergraduates and graduate or professional degree students. You are not required to show financial need to receive a Direct Unsubsidized Loan.
What types of federal student loans are available?
The U.S. Department of Education’s federal student loan program is the William D. Ford Federal Direct Loan (Direct Loan) Program. Under this program, the U.S. Department of Education is your lender. There are four types of Direct Loans available:
Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school.
Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but eligibility is not based on financial need.
Direct PLUS Loans are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required. Borrowers who have an adverse credit history must meet additional requirements to qualify.
Direct Consolidation Loans allow you to combine all of your eligible federal student loans into a single loan with a single loan servicer.
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Online resources mentioned in the video:
Plus Loan & Master Promissory Note & Entrance Forms
www.studentloans.gov
Principia Prep has been around for almost 20 years helping families with the college process both admissions and financial aid.
#College #highschool #loans
The explanation you're looking for starts at minute 2:47 Thank you for this video Ed.
Great video!! I fully understand the differences between the federal stafford loans. Thank you 🙏🏾
Thank you for watching and helping the scholarship fund.
Thanks so much for making yourself available such great information!!!! I’m now a subscriber 👍
Thank you
Thanks for this video Ed! Tons of helpful information on this one. Will be watching this multiple times in the future when it comes time to deal with the loan process. Roxbury High School Class of 2022
Thank you for watching your high school has been counted
Thank you for the video. Hackettstown High School Class of 2023!
Excellent excellent info. This answers ALL my questions. So clear. Ed you are awesome.
Thank you for watching I appreciate it
Thanks for the video Ed, it was very informative and helped me fill out my FAFSA. Also nice Spider-Man poster in the background, I'm a big Spider-Man fan LOL
Glad I could help. Thank you for watching.
Thanks. This really helps to clarify things, re: federally subsidized loans--
Thank you for watching and commenting we are using the videos to create scholarships so the more you watch the more it helps.
Jeeze these are really helpful advices, my parents are dumb and would never utilize these concepts. 12:08 - "For obvious reasons", the government really helping future students out here.
Thanks Ed for another great video. Morris County School of Technology class of 2022
Thank you for watching your high school has been counted.
Thank you for everything that you do, especially helping with scholarships and applications. Our daughter is at Bergenfield HS, Bergenfield NJ Class of 2022.
Thank you for watching and helping the scholarship fund. Your school has been counted.
Thanks, the information was helpful. Saved me a trip to the bank. Much thanks :)
Thank you for watching and helping the scholarship fund
WOW!! I think you just took a WHOLE lot of stress off of me!! My son is a sophomore and the financial aid office suggested the Parent Plus loan when he went to set up a payment plan.
We have been struggling paying off the balance each term! One parent has low credit score the other excellent, should the low score parent/spouse apply for the Parent Plus loan?
Thank you for the videos
Glad you like them!
Thank you, Pequannock Township High School senior 2022
Thank you for watching and helping the Scholarship Fund. Your High School has been counted.
Thank you!
Thank you for watching and commenting we are using the videos to create scholarships so the more you watch the more it helps.
Thanks Ed, very helpful content. My daughter already submitted her FAFSA and received the financial aid summary report which outlines the COA and estimated remaining cost after grants and scholarships. Freshman fall classes already start in mid-August, and was wondering what is the latest to apply for PLUS? Of course, we'll try to do this as early as possible.
You can do the Plus loan the day before it's due the loan process is very fast.
So I’m struggling with filling out paperwork for Medicaid because they wanna know how much my student loans are but the paper in the list is so long I don’t know what to put in to the information line.
Thank you for this video! - Passaic County Technical Institute Class of 2024!!
Great content 👏
Do your recommendations still stand in the light of rising interest rates today?
Because you know everything to federal life terms
I'm convinced that state schools and community schools are the way to go. The pickle I am in now is due to my naivety. My ex's new wife at the time, and my ex, played up a particular university out of state, to my child, which was a nice school of course, but at 40K a year. My child could have gone to another nice school, in-state, but would have only cost me approx 4K a year. My ex and I intended to split the tuition, on the upscale university, which we did. I would do anything in the world for my son. If he was convinced that this was the school that he needed to go to, then so be it, in my eyes, although we went on many a tour, and he would have been able to attend all, but one other college. I have clawed my way through much to care for him in any way that I possibly can. Unfortunately, me, not knowing the price of tea in China, and thinking all would be well. Here we are, 12 years down the road, and the payments keep going up and up. It's scary. I'm getting older, and worry about that loan more and more. I had no idea what I was getting myself into, but my ex's wife knew EXACTLY why she was pushing for the higher-priced school. I will not go into details, but she was determined to control the course of the future, unbeknownst to me. Her brother-in-law, married to her sister, a second marriage, did the same thing to his ex. He is a lawyer. I don't begrudge the education or the experience that my son was able to enjoy, and friendships made, due to attending this particular university, but 12 years down the road, and no relief in sight, has me stuck in places I don't want to be. I have no clue how this will work out. I'm going to apply for IDR, but, aside from lowering the payments; how can this change-of-status payment actually re-size the loan in my favor. Trying not to cry here. What to do???? Any sound advice?? Thanks.
Make your son pay for it. Why not? Or, help you!
Thank you for watching
Tell your son the truth and ask him to help. He already graduated so I'm sure he's going to chip in.
@@boykekp I won't ask for help. My mistake for not knowing the score. I will handle it...somehow. Thanks for the response. Have a good night!
@@allkindsamusicchick drop your ego. Foolish of you to say you won’t ask for help. You, your son and his mother are in this together. All 3 of you need to start attacking this debt aggressively
hi Ed, thank you so much for the video, really helpful. We wonder if we should pay it off for 25 years? Which one is better 10 or 25 years?
10 years would be better because it is usually best to get rid of debt. But it always depends most on what you can afford to pay.
Hey guys,
What if I already graduated from a bachelor's degree and I am interested on pursuing a second bachelor's, will I be able to get an undergraduate loan and the grad plus at the same time?
Will they just aprove the cost of tuition or they will aprove more based on other related expenses?
Thank you!
thank you!!
THANK YOU SO FREAKING MUCH
Thank you for watching and helping the channel
Does the loan effect any other awards such as TAP?
I’m lookin for federal spending money can we Get education only or public school
How to i go about paying the subsidized loan interest? Im not sure where im supposed to go or do to start paying
Thank you for the video! Very helpful! I just got back my FAFSA reward and it tells me that I need $3,500 in subsidized, $2,000 in unsubsidized, and $2,272 in parent plus loan and those are waiting my approval or disapproval. I'm unable to do the parent plus loan because my parents are financially unable to help me through college. What does it mean for me financially if I deny the loan on the tab to "accept award offer"? Is this parent loan required? If my parents are unable to help me, what should I do?
The college is putting that loan on the award letter to show you that's the remaining amount needed to cover the college cost for the year
Hi Ed, my student received an award letter today and the award is $15k in parent plus loan and $1k in unsubsidized loan. Why wasn’t she offered the $3k subsidized loan and $2k unsubsidized loan? Can we request for these student loans? I’d rather not take out a parent plus loan. Can you please help me? I’m so confused. Thank you.
how often does interest acquire on unsub loans? that is the only thing I am eligible for now that I am considered a graduate student
Hi,
I have been credited $600 of an unsubsidized stafford loan, is that good to accept?
THANK U
Thank you for watching and helping the scholarship fund.
Should the plus loan show on the students credit ? I know you stated that it’s only in the parents name but I believe some of my parent plus loans are on my credit report
The Plus loan is only in the parent's name. The student has no ownership of it in any way.
Hi Ed, I been watch some of your loan videos and I am a little confused. My son is a 2nd year student at Rutgers (NJ state university). I think we were awarded only an "Unsubsidized" loan for each of the 2 years, which we decline.
My questions are: 1. Is there always a Subsidized & Unsubsidized portion to each loan?
2. If I understand correctly the interest on an unsubsidized loan starts the day you take it out and we would be responsible for all of it. Am I correct?
Thank you.
Your answer 11:05 in th-cam.com/video/BjXckeqExQ0/w-d-xo.html
Hi Ed, I'm a confused about what you said in a couple of videos: If FAFSA says your family can pay $20,000, and the net price of the collge is $40,000, you need $20,000 of aid. But is the maximum loan amount $5,500? How can you come with the rest of the money. Will they give you other forms of financial aid?
In this example 5500 is max loan amount for the year. 20000 for the whole 4 year degree.
Good clarification
Pequannock Township HS class 2022
Thank you for watching your high school has been counted
Thanks for sharing this information. I have yet to understand why I'm being discouraged to take out student loans that are rewarded to me. Why do they offer it, then turn around and tell you that you really should try not to? Such mixed signals. Is it true that if they reward you these loan amounts, that you are actually eligible for them, or they see a financial need for it?
So the interest on a student loan is applied on the principle Yearly and not monthly?
So what happens if you pay off a subsidized loan before you are out of school? There is no interest payments?
For a subsidized loan, what if a person pays off part of the loan while in school? Does the interest applied yearly then apply to the remaining amount instead of the original amount?
unsubsidized loans accrue interest on the remaining amount yearly?
Are PLUS loans only for a parent of a student? For instance, if I'm going for my masters and my parents aren't involved whatsoever in the process, would I fill out the PLUS loan for myself?
Yes as a student you can for grad school take out a Grad Plus loan
If you pay off these loans early in order to reduce the amount of interest you pay, why do they take your payment and pay interest off before principal? Why would you pay off early if they are going to take all of the interest before the principal?
If the student is 17 can they still can still apply for the federal loan and do the MPN?
Yes you would still fill out their MPN and Entrance paperwork
Do you have to complete FAFSA and Promissory notes every year?
Just the Fafsa every year
Hi
Your video was very helpful.
Can the subsidized loan be taken away from you?
yes if you don't have financial need at the college
50 a month i feel is a waste a time on interest. I will need to apply for a grad plus loan
quick question, i’m going to be a junior next semester and actually do not qualify for the SUBSIDIZED loans anymore, is it possible i can take out the full amount of $6500 in UNSUBSIDIZED loans, to cover my costs?
How many college credits do you have?
Ed Zamora as of now i have 62
@@Gabrielpitts2 Ok you may still have space for unsub loans. The max direct loans for a Dependent Student is $23,000 for subsidized loans and $8,000 for unsubsidized.
If you are independent the max allowed goes up to $57,500
Thanks - I have twin boys, graduating class 2022 Hope Christian HS in Albuquerque NM. They both will be entering Liberty University in the fall. Is there any help $$ available for parents of multiples in college?
Thank you, Saddle Brook High School Class of 2023 Melanie Juliano
Hi ! What does it mean if the financial aid office says they will increase my unsub loan by 2,500 ? like does that mean i will get that amount ? if so when
This is usually done based on becoming independent or the Plus Denial. The amount of the increase would be $2,500 per semester
Thank you for watching
@@edzamoracollegeprepchannel3820 but will i get this money this semester ?
@@Seriesofcrystal Spring 2021 or Fall 2021 which one do you mean?
@@edzamoracollegeprepchannel3820 Spring 2021
the lack of views on videos like this speaks volumes
Thank you for watching and commenting we are using the videos to create scholarships so the more you watch the more it helps.
Student login can you sign everything
Ok it’s only first to confirm subtitles about training hours
I’ll use IRa to make money for bank credit union
How is private school of federal are they rich
So I have to get ID to go to new heaven school because
If I’m your student it’s illegal to work 2 work hours because if company need a traing then only one company have security FAFSA AID ME TO PAY CAN I USE YOYR CREDIT
No verification 2million to confirm it
Ok load is IRA
Is there any way i could get a private audience from you. I tried your web site with no success.
Yes I help families through one-on-one meetings just text me 908-400-1363
IHA 2023
Because I’m looking for federal police secretary to protect god he might need me t9 heaven you know can we go to federal bank credit to save Godzilla here because I have a Godzilla can we take Godzilla to heaven
Let’s get skyline to heaven so I can get to sign my HR TO IF GOD NEW PRESIDENT IS THAT NOAH
FAFSA. FAFSA
Thank you for the video. Hackettstown High School Class of 2023!