Student Loans

Types of Federal Student Loans

Federal Subsidized Loan

A Federal Subsidized Loan is awarded on the basis of financial need. Normally, no interest will be charged on the loan before repayment begins because the federal government “subsidizes” the interest during this period. However, for new borrowers beginning July 1, 2013 that subsidy will end after 150% of the published time for completion for the program you are in or once you are no longer enrolled half time in school.

Federal Unsubsidized Loan

A Federal Unsubsidized Loan is not awarded on the basis of need. The Federal Unsubsidized Loan provides financial assistance to all students regardless of income. You will be charged interest from the time the loan is disbursed until it is paid in full. (If the student allows the interest to accumulate it will be capitalized and added to the principal amount of the loan.)

Federal Plus Loan

Creditworthy parents of dependent students can take out loans to supplement their children’s aid packages. The Federal PLUS loan program allows parents to borrow money to cover any costs not already covered by the students financial aid package, up to the full cost of attendance. PLUS loans are the financial responsibility of the parents, not the students. Dependent undergraduates may be eligible to borrow additional funds through the unsubsidized Federal Stafford Loan program if the parent is unable to obtain a PLUS loan because of exceptional circumstances or because the parent was denied a PLUS loan. PLUS Loan Repayment begins within 60 days after the last disbursement of the loan. Interest begins to accrue on the day of the FIRST disbursement.