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:
- Subsidized and Unsubsidized
- Parent Loans for Undergraduate Students (PLUS)
Subsidized Federal Direct Loans are need-based and are for undergraduates only. The federal government pays the interest on the Subsidized Loans while the student is in school. The interest rate for the Subsidized Loans is 4.29%.
The Unsubsidized Federal Direct 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 Loan is 5.84%.
Additional Programs for Undergraduates and their Parents
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 6.84%. This loan may supplement other financial aid programs.