Why Student Loans?
Research shows that a university education increases an individual's earnings throughout his/her lifetime. Educational loans are a tool you can use to invest in your development and your future. The William D. Ford Direct Loan Program ensures that students and parents have sound options for borrowing. The Direct Loan Program offer students access to higher education through several types of federal loans: the Perkins loan, Stafford loan, and Parent Plus loan. Each of these options offer students and parents low interest rates, simple applications and in-school deferment.
The Federal Perkins Loan - The Federal Perkins Loan Program provides low-interest loans to help needy students finance the costs of postsecondary education.
The Federal Stafford Loan - Federal Stafford loans are fixed-rate federal student loans for undergraudate and graduate students attending college at least half-time. Stafford loans are the most common and one of the lowest-cost ways to pay for school.
The Federal PLUS Loan - The Federal Parent PLUS loan helps parents and guardians with good credit borrow up to the cost of attendance for their undergraduate children. Parent PLUS Loan funds can be used for tuition, supplies, housing and more.
Private/Alternative Loans - Private/Alternative Loans help students fill the gap between limited Federal aid and the cost of education. These loans are through private lenders and require the student and co-signer to be credit worthy and some may require interest only payments during school. Interest rates are variable and borrower benefits vary by lender. Students are encouraged to research their alternative options carefully and utilize this aid only after all Federal aid is exhausted.
Next Steps
After reviewing the loan options available to you, you will need to indicate your decision to accept or reject each loan offer. You may choose to accept the entire loan or only a partial amount. (See Financial Aid Checklist for steps to accept or decline aid.) Next you'll complete the applicable paperwork, apply for any credit-based aid and complete your student financial aid file.
Web Resources:
www.studentaid.ed.gov
www.mappingyourfuture.org/paying/financialaid.htm
www.tgslc.org/borrowers/loans/index.cfm
www.collegeanswer.com
www.finaid.org/loans/studentloan.phtml
