A loan for college costs is money that must be repaid. Loans represent a major source of assistance you should consider as you try to meet the full costs of your education. Educational loans generally have long-term repayment schedules, offer low interest rates, often have provisions for deferring payments and may offer additional benefits related to financial need.
Before you borrow money for college, you should understand the specific conditions and requirements regarding disbursements, deferments and repayment options. If you fail to meet the conditions of the promissory note, you may be denied all federal aid, lose your good credit rating and be unable to borrow money to buy a car or home. Loan terms are subject to change at any time.
Federal Direct Subsidized Loan
The subsidized loan is a need-based loan for undergraduate students from the US Department of Education. Eligibility for this loan is determined by the FAFSA. You must be enrolled in 6 or more credits to receive this loan. The interest for this loan does not accrue while you are enrolled in school at least half time and during your six-month grace period. There is an origination fee of approximately 1% charged by the US Department of Education, which is automatically deducted at the time of disbursement.
Federal Direct Unsubsidized Loan
The unsubsidized loan is available for all eligible undergraduate and graduate students. Eligibility for this loan is determined by the FAFSA. You must be enrolled at least as a half time student (6 or more credits for undergraduate students and 5 or more graduate level credits for graduate students). The interest on this loan accrues on the account from the date of disbursement. Payments on the interest and principal are not required during periods of half-time enrollment and during your six-month grace period. There is an origination fee of approximately 1% charged by the US Department of Education, which is automatically deducted at the time of disbursement.
Federal PLUS Loan
The PLUS loan is available to graduate students or parents of dependent students. The eligibility for this loan is determined by the FAFSA and by the amount of financial aid received. This is a credit based loan, which has a secondary application that must be completed. If denied, you may re-apply with a co-signer. If the parent of a dependent student is denied, you may be eligible for additional unsubsidized loan funds.
Alternative loans are available through the state agency or private banks. We encourage you to accept federal student loans before applying for alternative loans. You should review the terms and conditions for all loans before accepting. Alternative loans are credit based loans with separate applications. All alternative loans will require a Loan Acceptance Disclosure approval by the student after loan is accepted and will have a mandatory 10-day holding period before disbursement.