Student Loans/Pell Grants
TYPES OF LOANS
US Department of Education
The US Department of Education offers low-interest loans to cover the cost of college or career. For more information visit: https://www2.ed.gov/fund/grants-college.html?src=pn
Direct Subsidized Loan
For undergrad students with financial need:
College/university determines amount and may not exceed financial need. Department of Education pays interest while in school at least half time.
Direct Unsubsidized Loan
For undergrad and grad students enrolled no requirement to demonstrate financial need
School determines amount based on cost of attendance and other financial aid. Student is responsible for interest.
Direct PLUS Loan
For grad or professional students and parents of dependent undergraduate students
Loan amount is minimum cost of attendance. Credit check required. Department of Education is the lender.
Private Loans
Students should borrow with federal loans first which are cheaper, more available and have better repayment terms than private/student loans. Eligibility, interest rate and fees for private loans based on credit scores.
More information on private/alternative loans at www.finaid.org/loans
HOW TO APPLY FOR STUDENT LOAN
Student Loans
If you apply for financial aid, you may be offered loans as part of your school’s financial aid offer. A loan is money you borrow and must pay back with interest.
If you decide to take out a loan, make sure you understand who is making the loan and the terms and conditions of the loan. Student loans can come from the federal government, from private sources such as a bank or financial institution, or from other organizations.
For more information, visit: www.studentaid.gov/loans
PELL GRANTS
Federal Pell Grants are free grants for college students who qualify for assistance. This grant never has to be repaid, so is truly free money for college.
If you are looking for free money for college, it is hard to beat a federal Pell Grant. All students who are interested in free grants for college should submit a FAFSA, which serves as the free grant application. Awards are made students based upon financial need. You will be notified of your Pell Grant award, if any, as part of your financial aid package.