Loans are a form of aid that needs to be repaid. Loans for higher education are generally offered at low interest rates and can be repaid over an extended period of time after the student leaves the institution.
In order to apply for any of the following loans, a FAFSA
must be filed in order to determine eligibility. You need to take full responsibility for following the entire loan application process.
Programs for Undergraduate Students
There are three types of loans available:
- Parent Loans for Undergraduate Students (PLUS)
Subsidized Federal Direct Stafford Loans are need-based and are for undergraduates only. The federal government pays the interest on the Subsidized Stafford Loans while the student is in school. The interest rate for the Subsidized Stafford Loans is 3.4% through June 30, 2012.
The Unsubsidized Federal Direct Stafford Loan
is not need-based and the student is responsible for the interest as soon as it is taken out. The interest rate for the Unsubsidized Stafford Loan is 6.8%.
>> See loan application procedures for Federal Stafford Loans
Additional Programs for Undergraduates and their Parents
The Federal Perkins Loan
is a program providing long-term loans to undergraduate students who demonstrate financial need and are capable of academic performance at an acceptable level. No interest accrues on the loan as long as the borrower remains at least a half-time student.
The Federal Direct Parent Loan for Undergraduate Students (PLUS)
is available each academic year for parents of dependent undergraduate students at a fixed rate of 7.9%. This loan may supplement other financial aid programs.
>> See application procedures for a PLUS Loan