Student Loans
An education loan is a form of financial aid that must be repaid, with interest. Student loans are loans taken out in the name of the student. They must be used for educationally related expenses, such as tuition, housing, books, and any other cost associated with going to college. Whether or not to take out a student loan to fund your education can be a big decision. It is important to look at your Financial Aid Package and create a budget of your educational expenses to determine if a Federal Direct Loan is right for you.
Federal Direct Subsidized Loans are need-based loans. The term “subsidized” means the federal government pays interest on the loan on the student’s behalf until the student enters repayment.
Federal Direct Unsubsidized Loans are non-need based loans. The term “unsubsidized” means the federal government does not pay interest on the loan until the student enters repayment; students are responsible for paying all accrued interest. Interest can be paid while the student is in school, or it can be deferred until the student enters repayment. If deferred, the unpaid interest that accrues is added to the loan amount the student borrowed, a process known as capitalization.
Federal Parent Plus Loans are federal loans to help you pay for the cost of your child’s education expenses. Parent Plus loans are only available to Dependent Students. To apply for a Parent Plus Loan go to studentloans.gov and complete a Parent Plus Application and Parent Plus Master Promissory Note. The school will be notified electronically within three to five business days from the time of completion. For more information about Federal Parent Plus Loans GO TO https://studentaid.gov/plus-app/