Qualified students and parents of students can borrow money for school through various low interest federally supported student loans. Click here for rmore information on federal student loan programs. The U.S. Department of Education has 2 main student loan programs. The first is the Direct Loan program which includes: 1. Unsubsidized loans, 2. Subsidized loans, 3. Direct (PLUS) loans, 4. Direct Consolidation loans. The second program is the Federal Perkins Loan Program. Students must also have obtained a high school diploma or GED in order to be eligible. Students without a diploma or GED should check the student aid website for most updated information. An educational loan is a serious commitment. Student loans must be paid back with interest and borrowers must make payments until the loan is fully repaid. Hight default rates restrict schools from participating in various student loan programs. Check with the financial aid office.
Federal Perkins Loans
Perkins Loans are very low-interest federal loans (5 percent) available for students who have financial need and are enrolled at a participating school.
The annual loan limit is $5,500 for undergraduate students. The aggregate loan limits are up to $27,500 for under-graduate study leading to a bachelor's degree. No interest is paid while enrolled in school at least halftime and repayment begins nine months after graduation, leaving school or dropping below half-time enrollment. Click here for more information.
Federal Stafford Loans
Federal Stafford Student Loans are for undergraduate, graduate, vocational or professional students who demonstrate financial need. The interest rate on Stafford loans is variable.
Specific information regarding interest rates and current loan ceiling amounts are generally available from the Financial Aid Office at the college or university the student is planning to attend. Click here for more information on Federal Stafford Loans.
Federal Unsubsidized Stafford Loans
Middle and higher-income students may borrow for education costs in the federal unsubsidized Stafford loan program. With the exception of demonstrating financial need, borrowers must meet all eligibility criteria of the regular Stafford program.
Interest payments begin immediately after the loan is fully disbursed or may be added to the principal balance. Regular repayment begins six months after the borrower ceases to carry at least one half the normal full-time school workload.