|
Colleges handle financial aid in different ways. They can participate in different programs and
have different processing deadlines. Each school adopts a federal loan program - either the
Federal Family Education Loan Program (FFELP) or the Direct Loan Program. Both programs are governed by federal regulations that determine
the loan programs, loan limits, and repayment options. In the FFELP, private lenders provide the
loan funds and work with guarantors to back the
loans. In the Direct Loan Program, the government provides the loan funds and backs
the loans.
Your financial aid award package will tell you what types of education loan programs you are eligible to accept. If you have remaining unmet need, you may need parent loans or
alternative education loan programs to cover all your expenses. Your
school's financial aid office can help you determine which programs are right for your unique situation.
Keep in mind that loans with the lowest interest
rates and with the most options for deferring
payment are awarded to those with the greatest need. Various loan types are listed
here. You
may not be eligible for all of them. Your
school's financial aid office determines your eligibility for both loan and non-loan programs.
Undergraduates
The federal government and private lenders offer students loans to finance their education. These
government loans, offered through FFELP or the Direct Loan
Program, have low interest rates and do not require credit
checks or collateral. Student loans provide a variety of
deferment options and extended repayment terms. Eligibility
for each type of loan usually depends on need as determined
by the Department of Education or the financial aid office.
In addition, many lenders offer private loans to cover
un-met need.
Click here for more information
Parents
Parents of dependent undergraduate students
attending an eligible college, university, or trade
school may take out a PLUS loan to fund their child's entire cost of attendance, minus any other
financial aid. Parents with satisfactory credit may qualify for a PLUS loan
regardless of their income level or financial
assets. PLUS loan proceeds may be used to pay
all authorized education expenses. PLUS loans are
offered by both the federal government and
private lenders. In addition, alternative
loans are offered to meet undergraduate
need.
Click
here for more information
Graduates
There are a variety of low-interest loans and other aid programs available to graduate students
through the FFELP and Direct Loan Program.
Many are similar to the undergraduate loan
programs, yet with higher annual loan limit amounts. Others are unique to a graduate student's specific area of study. In addition, many lenders offer private loans to meet
un-met graduate need.
Click here for more information
|
