Student and Parent Loans

Education loans come in three forms: federal, private, and institutional. You must file a FAFSA to be eligible for federal loans.

Federal Perkins Loans

These loans are available to families with extreme financial need. These loans carry a fixed 5% interest rate, are funded by the federal government, and are administered by the school.

Federal Stafford Loans

These loans are low-interest loans for students enrolled in college at least half time. The funds borrowed can generally be repaid over a 10-year period.

Subsidized Stafford Loans are available to students with demonstrated financial need. Students are not responsible for paying interest while enrolled in school.

Unsubsidized Stafford Loans are available to most students regardless of family income. Payments are not required while in school, but interest does accrue and is factored into your monthly payments, which begin six months after you graduate or drop below half-time enrollment.

Federal Parent PLUS Loans

These loans allow parents to borrow up to the full cost of education, less other aid received, for dependent students enrolled at least half time.

Parent Loans: Parents may opt to borrow money for their child’s education under the Federal Parent Loan for Undergraduate Students (PLUS) program. Parents can borrow up to the total cost of education or budget of their student's school, less any financial aid received. The PLUS is not a need-based program so a parent's income and assets are not taken into consideration. However, this is the only federal educational loan where a minimal credit check or evaluation is completed before the loan is approved.

Loan Terminology

Subsidized Loan:

Subsidized means that the government will pay the interest as long as the student is enrolled at least half-time in a school that participates in the Stafford Loan program. In addition, interest does not accrue and payments are not required until six months after the student ceases to be at least a half-time student.

Unsubsidized Loan:

Students must pay all accrued interest.