A federally subsidized loan program under which banks, credit unions, other financial institutions, and sometimes schools lend money to undergraduate and graduate college students who have no previous federally subsidized loans; formerly called Guaranteed Student Loans (GSL). Amounts available (as of 1990) vary: up to $2,625 a year for the first two years of undergraduate study; up to $4,000 a year after two years in a bachelor’s degree program; and up to $7,500 a year for graduate study. The maximum available for undergraduate study altogether is $17,250 and for undergraduate and graduate study together is $54,750, though in no case can this be more than the actual cost of the education, minus any other financial aid the student receives. The student signs a promissory note, and the funds will be lent to the school and then paid either directly to the student or into the school’s credit account, less a 5-percent origination fee and up to a 3-percent insurance premium. Interest charged is only 7 to 9 percent, and the repayment period is at least five and up to 10 years. Repayments of at least $50 a month do not begin until six to 12 months after the student either leaves school or drops below half-time, though payments may be further delayed under certain circumstances.