Loans
Student LoansWhat They Are:
These financial aid dollars must be repaid with interest. There are several types of loans available to students (in order of lowest interest rate to highest interest rate): federal subsidized student loans, federal unsubsidized student loans, federal Parent PLUS loans, and private student loans. All federal loans allow for a six-month grace period after a student graduates or drops below half time enrollment before the repayment period begins.
How To Get Them:
Federal student loans and parent PLUS loans are awarded through the FAFSA. Private student loans can be found through a number of sources like banks, credit unions, credit card companies, etc.
Very Important:
Federal loans are usually a better option than private loans. Federal loans offer a variety of repayment plans, lower interest rates, and are sometimes forgiven completely (if the student works in certain service positions after graduation).
Types of Student LoansSubsidized Federal Direct Stafford Loan
These financial aid dollars must be repaid with interest. There are several types of loans available to students (in order of lowest interest rate to highest interest rate): federal subsidized student loans, federal unsubsidized student loans, federal Parent PLUS loans, and private student loans. All federal loans allow for a six-month grace period after a student graduates or drops below half time enrollment before the repayment period begins.
How To Get Them:
Federal student loans and parent PLUS loans are awarded through the FAFSA. Private student loans can be found through a number of sources like banks, credit unions, credit card companies, etc.
Very Important:
Federal loans are usually a better option than private loans. Federal loans offer a variety of repayment plans, lower interest rates, and are sometimes forgiven completely (if the student works in certain service positions after graduation).
Types of Student LoansSubsidized Federal Direct Stafford Loan
- Eligibility is based on financial need.
- The federal government pays the interest while you are continuously enrolled in school at least half time, during yourgrace period, and during periods of authorized deferment.
- You may borrow up to the Cost of Attendance (COA) minus any other aid received, including any subsidized Stafford Loan amounts you may have been awarded.
- You are responsible for paying all interest, which will begin to accrue as soon as the loan is disbursed. You may choose to pay the interest as it accrues or defer it as long as you are enrolled at least half time, during your grace period, and during periods of authorized deferment.
- A non-need-based loan available to graduate and professional students (for themselves) and to parents (for theirdependent undergraduate student). You may borrow up to the Cost of Attendance (COA) minus any other aid received.
- You are responsible for paying all interest, which will begin to accrue as soon as the loan is disbursed.
- To be eligible, you must not have negative credit history.
- For graduate and professional student borrowers, the principal may be deferred as long as you are in school. For parent borrowers, the first payment is generally due within 60 days after the loan is fully disbursed. However, for loans first disbursed on or after July 1, 2008, parent borrowers may request to postpone payments while the student is enrolled at least half time.
- The Perkins program is administered by your school's financial aid and/or business office and provides loan funds at a fixed 5% interest rate. (Note: Not all schools participate in this program. To find out if your school participates in the Federal Perkins Loan Program, contact your financial aid office.)
- Eligibility is based on financial need.
- Loans must be repaid to your school after you have completed the 9 month grace period.
- Eligibility requirements are determined by each private loan provider/lender.
- Alternative loans should be borrowed ONLY after you have exhausted all federal loan eligibility.
- Check with your school's financial aid office to determine if a private education loan is the best option for you.