Everything you need to know about college loans
Whether you are an incoming freshman, continuing education student, or are pursuing a graduate degree, be sure to check these links to learn all about the different types of loans you can receive for college.
Direct Stafford Loans
The federal government offers federal Direct Stafford Loans, which are available to all students who complete a Free Application for Federal Student Aid (FAFSA).
Subsidized Stafford Loans
Here's what you need to know:
- Eligibility is based on financial need.
- This loan will not accrue interest if you take at least six credit hours, through the grace period (six months starts once you stop taking at least six credit hours), and while in deferment.
- Limits vary with class standing.
- There is a fixed interest rate.
- There is no credit check.
Unsubsidized Stafford Loans
Here's what you need to know:
- You are eligible for Unsubsidized Stafford Loans.
- This loan accrues interest starting at the disbursement of the loan.
- Interest may be paid during or after the grace period is over, as well as while you are enrolled.
- There is a fixed interest rate.
- There is no credit check.
Parent PLUS Loans
If you are a dependent student, your parents or legal guardians can apply for a Federal Direct Parent Plus Loan to finance your education up to your cost of attendance. This means that if your do not receive aid to cover your whole budgeted amount, the difference can be covered.
To apply for a Parent PLUS Loan, you must have a FAFSA on file. The loan requires a credit check, and it is taken out in a parent's name (you have no obligation for its repayment).
If your parents are denied a Parent PLUS Loan, you may be eligible for additional amounts in unsubsidized loans.
Private student loans
Alternative private student loans are available to assist you after all other sources are exhausted. You are the primary responsibility holder (and sometimes a cosigner, if required). The cosigner should be aware that if you don't make the payments that they will also be responsible for the loan payments. These loans can be taken out up to the cost of attendance after all other aid is subtracted.
Keep this information in mind:
- Fixed or variable interest rates
- Variable adjust up and down to current market conditions
- Interest rate is contingent on credit score
Private student loans should be considered after all other sources of financial aid (grants, scholarships, federal work-study, and federal student loans) have been exhausted.
Private loans can be expensive to take in place of federal student loans for some borrowers. The Office of Financial Aid cautions you to undergo research into all options and consider the cost of both types of loans. Federal loans have proven over the years to be cheaper and allow for more flexibility than loans taken from the private market. Compare the two side by side.