Types of Financial Aid - continued
* Federal Perkins 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 are low-interest loans for students enrolled in college at least half-time. Interest rates are fixed at 6.8% beginning July 1, 2006. The funds borrowed can generally be repaid over a ten year period.
Subsidized Stafford Loans are available to students with demonstrated financial need. The interest accrued on these loans is paid by the federal government while the student is in school. Payments begin 6 months after you graduate or drop below half-time enrollment.
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 6 months after you graduate or drop below half-time enrollment.
* Federal Parent PLUS loans allow parents to borrow up to the full cost of education less other aid received, for students enrolled at least half-time. The amount borrowed can generally be paid back over a ten year period. The interest is capped ate 8.5% beginning July 1, 2006.
Federal Graduate PLUS loans allow graduates students enrolled at least half time to borrow up to the full cost of education less other aid received. The amount borrowed can generally be paid back over a ten year period. The interest is capped ate 8.5% beginning July 1, 2006.
Institutional loans are made available by individual colleges. Each college determines its own loan characteristics and eligibility requirements. Check with the financial aid office at the college you will attend for more information.
* Private loans are provided to students by banks and loan companies. Each provider determines its own loan characteristics and eligibility requirements. A good rule of thumb is to look for private loans that offer: in-school payment deferment, high credit approval rates and flexible repayment options.
Learn the Loan Process