Student Loans

Loans can be part of a package of financial aid that a student receives. Nearly 60 percent of all aid is in the form of educational loans.

Student Loans: Most students must finance their education through student loans. The Federal Stafford Loan is the largest aid program. Students are offered either one of two types of loans under this program – subsidized or unsubsidized. Subsidized means that the government will pay the interest as log as the student is enrolled at least half-time in a school that participates in the Stafford Loan program. In addition, interest does not accrue and payments are not required until six months after the student ceases to be at least a half-time student. The unsubsidized Federal Stafford Loan is not based on need and students must pay all accrued interest. Note: There are no pre-penalties on any federal loan. For more information on the Federal Stafford Loan go to: www.staffordloan.com

Parent Loans: Parents may opt to borrow money for their child’s education under the Federal Parent Loan for Undergraduate Students (PLUS) program. Parents can borrow up to the total cost of education or budget of their student's school, less any financial aid received. The PLUS is not a need-based program so a parent's income and assets are not taken into consideration. However, this is the only federal educational loan where a minimal credit check or evaluation is completed before the loan is approved.