Student Loans
What Is a Student Loan?
With the increasing costs of higher education, many students are finding student loans to be the most practical means of financing a college education. The U.S. Department of Education offers the Federal Family Education Loan Program (FFELP) to assist students and parents of dependent undergraduate students. Below is a short description of each program. You may find more detailed information in the Student Guide, published each year by the U.S. Department of Education and available at www.studentaid.ed.gov.
Federal Stafford Subsidized Loan
This loan is available to dependent and independent students who demonstrate financial need as determined by the FAFSA. Interest is subsidized (paid by the government) while the student remains enrolled at an eligible institution for a minimum of six credit hours. Repayment begins six months after graduation, withdrawal from college or enrolling for less than six credit hours.
Federal Stafford Unsubsidized Loan
This loan is available to independent students and to dependent students who are not eligible for subsidized loans due to lack of financial need. The student is responsible for interest immediately following the disbursement. Repayment begins six months after graduation, withdrawal from college or enrolling for less than six credit hours.
Federal Parent Loan for Undergraduate Students (PLUS)
This loan is available to credit-worthy parents of dependent undergraduate students. Parents may borrow entire cost of attendance less any financial assistance. Repayment begins 60 days following the full loan disbursement. Supplemental credit and financial information may be required by the lender.
Private Alternative Loans
These are private loans offered by several lending institutions to students, parents and legal guardians. Eligibility requirements, interest rates and repayment terms vary according to lender. Maximum private loan amount is $12,000 per academic year per borrower (if no other eligibility for Federal Stafford Loans exists). Most students will need a co-signer before private loans will be approved by a lender. Please contact the Office of Financial Aid for further information.
Additional Information
The first loan disbursement for first-time borrowers will be delayed for 30 days from the first day of enrollment. All loan proceeds will be returned to the lender at any point in the semester that a student drops below half-time (six credit hours) status. A loan origination fee of 3% is usually deducted from each loan disbursement by the lender. Please borrow wisely. Student loan proceeds must be used for educational related costs only. Summer loan eligibility is based on annual and aggregate loan limits. Borrowing excessively for fall and spring semesters may jeopardize your loan eligibility for summer sessions.
Did you know?
All loan proceeds will be returned to the lender at any point in the semester that a student drops below half-time (six credit hours) status. A loan origination fee of 3% is usually deducted from each loan disbursement by the lender.
Related Links
Student Aid on the Web website »