This morning, USA Today is carrying a Detroit Free Press story online about student loan debt. Word for word, we see the following sidebar tacked to the bottom of the story:
Types of federal student loans(AT)
The two main types of federally subsidized loans available are:
A 5(PERCENT) loan for students with financial need. The loan is federally funded and supplemented by the university.
Available for up to $5,500 for each year of undergraduate study, or a total of $27,500.
Repayment begins six or nine months after the person leaves school, depending on promissory note provisions.
Subsidized(AT) Stafford loan:(AT)
A loan with an interest rate currently capped at 3.4(PERCENT), but that rate will double unless Congress acts by July 1 to freeze it.
Students can borrow up to $3,500 their first year, $4,500 their second year and $5,500 their third year and beyond -- up to a maximum of $31,000, of which only $23,000 can be subsidized by the federal government.
Interest does not accrue until graduation on subsidized Stafford loans. Borrowers must start repaying six months after graduation, or if they drop below half-time student status.
Since 2005, the loans are not dischargeable by filing for bankruptcy.
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