Student Loans
What They Are:
These financial aid dollars must be repaid with interest. There are several types of loans available to students (in order of lowest interest rate to highest interest rate): federal subsidized student loans, federal unsubsidized student loans, federal Parent PLUS loans, and private student loans. All federal loans allow for a six-month grace period after a student graduates or drops below half time enrollment before the repayment period begins.
How To Get Them:
Federal student loans and parent PLUS loans are awarded through the FAFSA. Private student loans can be found through a number of sources like banks, credit unions, credit card companies, etc.
Very Important:
Federal loans are usually a better option than private loans. Federal loans offer a variety of repayment plans, lower interest rates, and are sometimes forgiven completely (if the student works in certain service positions after graduation).
*Note: There have been some recent changes to the federal student loan system. Students will be able to more easily consolidate loans, have the payments adjusted based on their income, and potentially have them forgiven if they make steady payments for 10 years. Positions that offer loan forgiveness are public service oriented and include government employees, non-profit workers, teachers, nurses, social workers, and those in the military.
These financial aid dollars must be repaid with interest. There are several types of loans available to students (in order of lowest interest rate to highest interest rate): federal subsidized student loans, federal unsubsidized student loans, federal Parent PLUS loans, and private student loans. All federal loans allow for a six-month grace period after a student graduates or drops below half time enrollment before the repayment period begins.
How To Get Them:
Federal student loans and parent PLUS loans are awarded through the FAFSA. Private student loans can be found through a number of sources like banks, credit unions, credit card companies, etc.
Very Important:
Federal loans are usually a better option than private loans. Federal loans offer a variety of repayment plans, lower interest rates, and are sometimes forgiven completely (if the student works in certain service positions after graduation).
*Note: There have been some recent changes to the federal student loan system. Students will be able to more easily consolidate loans, have the payments adjusted based on their income, and potentially have them forgiven if they make steady payments for 10 years. Positions that offer loan forgiveness are public service oriented and include government employees, non-profit workers, teachers, nurses, social workers, and those in the military.