<p>As title. I am not sure how much is the difference. </p>
<p>And if we did not tat out the loan in one year, can we go back to take it with combinded amount from the next year? We really don't need it right now, but would like to keep it for a rainy day.</p>
<p>Subsidized Stafford: loan is subsidized by the govt. It is a need based loan. The govt pays the interest until you graduate or drop below 1/2 time plus a 6 month grace period. The interest rate loans disbursed in the 1011-2012 school year is 3.4%. Currently the interest rate is scheduled to increase to 6.8% for loans issued after this school year.</p>
<p>Unsubsidized Stafford: loan is NOT subsidized by the govt. It is not need based. You are responsible for the interest from the day the loan is disbursed. The interest rate is 6.8%.</p>
<p>The maximum Stafford loan for a freshman is $5500 of which up to $3500 may be subsidized if there is need (according to FAFSA and the school’s COA).</p>
<p>
No. The loan limits are by school year. You can’t get this year’s next year, only in this year.</p>
<p>Next school year, thanks to budget cutting, the interest rate of the subsidized Staffords go up to 6.8%. Therefore, be sure to take the maximum allowed amount of subsidized staffords out this year while the interest rate is still reasonable.</p>
<p>The subsidized loans have always been scheduled to revert back to 6.8% in the 2012-2013 school year. It is not something new, but was built into the rates back in 2007 when the rates for 2008 and onward were set. I am hoping that, based on current low interest rates, the actual subsidized rate will be something better than 6.8%. That is something we probably will not know until next year.</p>
<p>But I would agree that a subsidized loan at the current 3.4% is a good deal.</p>