Student
Loans :
For many students, loans will
make up a large percentage of paying for one’s
higher education. The amount of your loan will be determined
by an assessment of you and your parent’s income
and assets each year you apply for aid.
Below are brief descriptions of the
most popular student loans available. Click the loan
type to learn more about the loan such as interest rate,
requirements, limits, etc.
Perkins
Loan: A federally subsidized loan that allows the
student to borrow up to the amount suggested by the
school at a 5% interest rate. Interest on the loan is
subsidized by the federal government while the student
is in school and does not begin to accrue until the
student begins repayment nine months after graduation
or ceases to be enrolled at least half time.
Subsidized Stafford
Loan: A need-based federal loan which has a variable
interest rate that changes every year on July 1. Federal
government pays the interest on the loan while the student
is still in school and six months after the student
graduates or ceases to be enrolled at least half time.
Unsubsidized
Stafford Loan: A federal loan that is not need-based
and whose interest is not subsidized by the federal
government. The student is responsible for the interest
while in school and may either pay it quarterly or let
it accrue while in school.
Parent Loans
for Undergraduate Students (PLUS): A federal loan
that is available to parents of undergraduate dependent
students. This type of loan is not need-based and allows
funding for the entire cost of the student’s education;
including books, supplies, and living expenses.
Private Loan: Loans that are offered
by banks, credit unions, and other private lenders.
These loans are not sponsored by government agencies
and interest and terms of repayment will vary.
Note: Some states have their own
state-sponsored education loans. Be sure to ask the
Financial Aid Office of your school if you qualify.
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