Just like the other types of financial aid, the loan process starts with filling out the FAFSA. This form must be completed if you want to be considered for any type of federal financial aid; including grants, work-study and student loans.
After you have submitted your completed form, contact the financial aid office at the college(s) you are considering to discuss your financial aid options. Make sure you have all the right paperwork.
Five Things to Remember When Applying
for a Student Loan
- Make sure you have fully examined other options for aid. Visit our resource links and talk with your Guidance Counselor. Ask your prospective college's financial aid office about grants and work study.
- Know your rights and options:
You can choose the lender you would like to use, so investigate different lenders and find the best option for you. Talk to the college's financial aid department. Look at their preferred lender list. Then head out on the web. Remember: when attending a Direct Loan School, the Government is your lender.
- Just because you may be allowed to borrow extra doesn't mean you should. After all, you have to pay this back! Why not use only what you need - and save not only on the money you didn't borrow, but the interest on that money as well!
- Plan Ahead! Make sure you have all the paperwork filled out early. Don't miss out because you needed to make changes and ran up against a deadline you couldn't satisfy.
- Be Organized! Don't just sign the loan form and forget about it. Keep all your loan information together; you'll need it when you get out of college. Plus you will have everything handy if a problem arises.
Loan Types
There are many loans available to both students and parents. Below is a brief description of each FFELP loan program to assist you in choosing the best loan for you. This page and the left side navigation have a link to the application.
Subsidized Stafford Loan
Federal Subsidized Stafford Loans are available to undergraduate and graduate students attending a participating Title IV school. Eligibility is determined by the school, based on a federal formula which considers family income, school expenses and other financial aid awards. The interest on subsidized loans is paid by the government during any in-school, grace and/or deferment period.
Unsubsidized Stafford Loan
Federal Unsubsidized Stafford Loans are available on the same terms as subsidized loans. However, the interest on an unsubsidized loan is always the borrower's responsibility regardless of status.
Parent PLUS Loan
Federal PLUS Loans are available to credit worthy parents of dependent undergraduate students in amounts up to the total cost of education, less other aid. PLUS borrowers are responsible for all interest accrual on the PLUS loan.
GradPLUS Loan
Federal GradPLUS Loans are available to credit worthy graduate and professional students who have remaining needs that are not covered by Stafford Loans. You may ask your loan provider to place this type loan on an immediate in-school deferment to postpone repayment until graduation. The interest on a GradPLUS loan is the responsibility of the borrower from disbursement through payoff regardless of status.
Federal Student Loan Eligibility
To be eligible for Stafford Loans, the student must meet the following criteria:
- A US citizen or eligible non-citizen;
- At least a half-time student;
- Making satisfactory academic progress;
- Have a valid social security number;
- Have completed the Free Application for Federal Student Aid (FASFA);
- Have not defaulted on other federal obligations;