Federal Student Loans

A student loan is money that is borrowed and needs to be repaid. By completing the FAFSA, a student can qualify for federal student loans. Federal student loans are broken down into two categories:

• Subsidized: A loan for students with financial need. The U.S. Department of Education pays the interest on a subsidized loan while the student is in school.

• Unsubsidized: All students qualify for this loan regardless of financial need. It is the student's responsibility to pay interest on this loan.

Student loans are taken out in the student's name. Therefore, it is important for the student to understand the financial responsibility and obligation. As a first-year college student, the maximum amount that can be borrowed in a federal student loan is $5,500. As a second-year student, the amount goes up to $6,500 and a third-year student and beyond can borrow up to $7,500. For more detailed information about federal student loans, amounts borrowed, and interest rate, click here.