Federal Student Loans

• Stafford Loans
  Stafford Loans are federal student loans made directly available to college and university students and are used to supplement personal and family resources, scholarships, grants, and work-study. They may be subsidized by the U.S. Government or may be unsubsidized depending on the student's financial need.
  
  
  • Subsidized - Subsidized federal student loans are offered to students with a demonstrated financial need: generally requiring a lower family income. For these loans, the federal government makes interest payments while the student is in college. For example, those who borrow $10,000 during college will owe $10,000 upon graduation.
    
    
  • Unsubsidized - Unsubsidized federal student loans are also guaranteed by the U.S. Government, but the government does not pay interest for the student, rather the interest accrues during college. Those who borrow $10,000 during college will owe $10,000 plus interest upon graduation. For example, those who have borrowed $10,000 and had $2,000 accrue in interest will owe $12,000. Upon graduation, interest will begin accruing on the $12,000. The accrued interest will be "capitalized" into the loan amount, and the borrower will begin making payments on the accumulated total. Students can choose to pay the interest while still in college.
  
  
  
• Parent PLUS Loan
  The Parent PLUS Loan is offered to parents of students enrolled at least part time in a program included within a formal list of participating post-secondary institutions. PLUS Loans are also available for graduate and professional students. PLUS loans differ from Stafford and Perkins Loans (other federal student loans) in that in can cover a larger amount of the cost of education, has a higher interest rate and the commitment is undertaken by the parent, rather than the student.
  
  
• Graduate PLUS Loan
  This Graduate PLUS Loan is similar to the Parent PLUS Loan as it is an unsubsidized federally guaranteed loan up to the cost of education. It is taken out in the graduate student's name on their own signature and credit rating. It has the same federal loan deferment and forbearance options as the Stafford Loan, so graduate and professional students can postpone repayment of their federal student loans while enrolled at least half-time in a degree or certificate program.
  
  
• Perkins Loan
  This is a low interest federal student loan for graduate and undergraduate students. The college acts as the lender using a limited pool of funds provided by the federal government. These loans are awarded based on exceptional financial need.