Introduction | Grants | Loans | Work Study | Scholarships

Getting into College   › Introduction   › Your Career Goal   › Prerequisites   › Academically Prepared   › Select College   › Application Essentials   › Prepare and Apply   › Financial Aid   › Early Application

Loans are a form of financial aid that you will have to pay back. Loans based on financial need often have lower interest rates and are subsidized by the federal government. Loans not based on need are generally not subsidized, and you will end up paying a higher interest rate. Make sure you understand all of the terms of any loans - the interest rate, the repayment schedule, and when repayment must begin, before you commit.

Federal Loans, unlike grants or work-study, are borrowed money that must be repaid, with interest. These loans are a serious obligation, so students need to think about the amount that must be repaid over the years before taking out a loan.

There are several types of loans:

»	Federal Perkins Loans are made through participating schools to undergraduate and graduate/professional students.
»	Stafford Loans are for undergraduate or graduate and professional students made through one of two U.S. Department of Education programs: » William D. Ford Federal Direct Student Loan Program-referred to as Direct Stafford Loans or Direct Loans » Federal Family Education Loan (FFEL) Program-referred to as FFEL Stafford Loans or Federal Stafford Loans
»	PLUS Loans are loans parents can take out for their dependent undergraduate children and are made through either the Direct Loan or the FFEL program mentioned above.

Introduction | Grants | Loans | Work Study | Scholarships