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Future Students
Student loans are an important source of financial aid and are available to help meet expenses. Most loans offer low interest rates with no interest accruing while you're enrolled in school. Repayment for most loans begins after graduation or withdrawal from college.
Loans | Amount | Criteria | Comments |
|---|---|---|---|
Federal Subsidized | $3,500-$5,500 | Submit FAFSA, awarded based on demonstrate need. | Variable interest rate caps at 8.25%. Interest is subsidized by the federal government therefore interest does not accrue on the loan while the student enrolled remains at least half-time. Payment of interest and principal begins the seventh month after the last date of enrollment. |
Federal Unsubsidized | $3,500-$5,500 | Submit FAFSA, no demonstrated need. Awarded with or instead of subsidized loan. | Interest rate and payment terms are the same as for subsidized loans. However, since the government does NOT pay the interest on the loan, the student may elect to make interest payments while in school OR let the interest capitalize. |
Federal Direct PLUS Loan | As needed up to the cost minus other financial aid | Application is made with the lender; must be creditworthy. | Parents may borrow the amount needed to cover educational costs minus other expenses not covered by financial aid. Payment of both interest and principal begin 60 days after final disbursement of the loan. Variable interest rate capped at 9%. |
Federal Perkins Loan | $200-$2,000 | Submit FAFSA; must demonstrate financial need, complete entrance counseling, and sign promissory note. | Repayment with 5% interest begins 10th month after the student terminated enrollment. Until that time, no payments are required and interest is paid by the government. |
