Students on campus

Types of Loans

Types of Loans

Types of loans available to fund a student's education.

It is recommended that all students complete a Free Application for Federal Student Aid, whether or not you feel you are eligible for government aid, because you will  need one on file to qualify for campus-based, or other types of scholarships.

Stafford Loans

All Stafford Loans are either subsidized (the government pays the interest while you're in school) or unsubsidized (you pay all the interest, although you can have the payments deferred until after graduation). To receive a subsidized Stafford Loan, you must be able to demonstrate financial need.

With the unsubsidized Stafford loan, you can defer the payments until after graduation by capitalizing the interest. This adds the interest payments to the loan balance, increasing the size and cost of the loan. All students, regardless of need, are eligible for the unsubsidized Stafford Loan.

Stafford Loans allow dependent undergraduates to borrow up to $2,625 their freshman year, $3,500 their sophomore year, and $5,500 for each remaining year (independent students can borrow an additional unsubsidized $4,000 the first two years and $5,000 the remaining years).

Many students combine subsidized loans with unsubsidized loans to borrow the maximum amount permitted each year.

Perkins Loan

The Perkins Loan is awarded to undergraduate students with exceptional financial need. This is a campus-based loan program, with he school acting as the lend using a limited pool of funds provided by the federal government. The Perkins Loan is the best student loan available. It is a subsidized loan, with the interest being paid by the federal government during the in- school and 9-month grace periods. There are no origination or guarantee fees, and the current interest rate is 5%. There is a 10-year repayment period.

PLUS Loans (loans for parents)

PLUS Loans enable parents with good credit histories to borrow to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half time. The interest rate is variable, but currently does not exceed 9 percent. The interest rate is adjusted each year on July 1. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full. Generally, repayment must begin within 60 days after the final loan disbursement for the academic year. There is no grace period for these loans. Parent must be repaying both principal and interest which the student is in school.