Student Loans

LOANS

There are many ways to get funding for your education; one of the most widely used resources is a federal or private loan.

Federal Stafford
The Federal Stafford Loan is the most common type of federal student financial aid loan, and it requires the completion of the Free Application for Federal Student Aid (FAFSA). There are two types of Federal Stafford Loans:

Subsidized
A subsidized Stafford Loan is awarded on the basis of need and the federal government pays interest on the loan while you are enrolled at least half-time (6 credits) and for one 6-month grace period after you graduate or fall below half-time enrollment.

Unsubsidized
An unsubsidized Stafford Loan is not based on need and allows some students to borrow additional money. Students are responsible for the interest on an unsubsidized loan. No payments are required on any Stafford Loan until 6 months after you leave school or fall below 6 credits. If possible, you may want to pay accrued interest on an unsubsidized loan while you are enrolled.

For more information on Federal Stafford Loans, visit www.studentaid.ed.gov

Federal PLUS Loan
Parents and stepparents of dependent undergraduate students attending school at least half-time may take out a Parent Loan for Undergraduate Students (PLUS). This is an unsubsidized loan that is often lower in cost than a private loan because the federal government guarantees it. Loan approval is subject to credit criteria established by the U.S. Department of Education and your lender. A PLUS loan must be repaid. It is the responsibility of parents to make these payments.

For more information on Federal Plus Loans, visit www.studentaid.ed.gov

Alternative Student Loans
Some students may need additional loan funds after maximizing their federal loan options or may not be eligible for federal loans and still need to borrow towards their education. Many lenders offer private alternative loans to help students meet the gap between financial aid and college costs.

Students must either meet the credit criteria of the loan for which they are applying or have a credit-eligible co-borrower. Many of these loans also require enrollment in six or more degree credits per semester, but there are options for students studying in non-degree classes or enrolled in less than half-time status.