Loans

Loans are a real part of the financial aid picture for most students attending college. Loans, unlike scholarships and grants, need to be repaid. Many of you are probably thinking that you are going to avoid loans at all costs. If you can do that, congratulations!. But as you put together a plan to pay for college, you should learn about available loans and decide if you need to apply for a loan. Despite the bad rap, when used wisely, student loans can help make higher education more affordable.

There are different types of federal student loans including: Perkins Loans, Subsidized Stafford Loans, and Unsubsidized Stafford Loans. There are also loans offered to parents, aptly called Parent PLUS Loans. The specifics of these loans change often so make sure that you get your information directly from the U.S. Department of Education by visiting Student Aid on the Web .

Here are interesting facts about some student loans:

  • The interest on Perkins and Subsidized Stafford loans is paid for by the government while you’re in school (at least ½ time) and for the first six months after you leave school.
  • Repayment can be set up for 10, 15,  or 20 years. Payments can also be "graduated" which means that you pay less early on in the repayment period and that you pay more the closer you get to paying off the loan.
  • There are also new repayment programs on the horizon that you can learn about now by visiting IBRinfo,  (Income-Based Repayment) an independent nonprofit source of information about new student loan payment and forgiveness programs.
  • Federal Student Loans don’t require a credit check – if you’re a student you qualify. Your financial need will, however, determine what type of loan(s) you are offered. Parent PLUS loans are based on a credit check.

Remember, loan information does change so make sure you visit this website StudentAid.ed.gov for more information on Federal Student Aid Programs.

Grants

Campus-Based Aid

Stafford Loans

PLUS Loans (Parent Loans)

PLUS Loans for Graduate and Professional Degree Students