Frequently Asked Questions

Frequently Asked Questions about Eligibility and the Application Process 

Q: I don't think I will qualify for financial aid. Why apply?

A: You should always apply, even if you don't think you will qualify. In reality, many families and students make the mistake of believing they won't qualify for financial student aid and throw away a resource by never applying. It is important to be aware there are some sources of financing, such as the Stafford and PLUS loans, which are available to families and students regardless of financial need.

Q: Should I wait until I am admitted before I apply for financial aid?

A: No, you can begin applying after January 1.

Q: Is everyone eligible for federal student assistance?

A: No; however, this should not stop you from applying. Even if you're not sure whether you may qualify for federal student aid, it is best to go ahead and complete the form. Many people mistakenly believe they will not qualify and are surprised to find out they do.

Q: Are college student loans based on financial need?

A: In some cases, yes, but not in all. The unsubsidized Stafford loan is available without having to demonstrate financial need. In addition, parents can take out loans without demonstrating financial need. There are many options available.

Q: I have bad credit and don't think I would be approved for a college student loan. Should I apply anyway?

A: Yes. There are many different sources of funding available. It never hurts to go ahead and complete the form and let us check. You may be surprised.

Frequently Asked Questions About Paying Back Student Loans

Q: My parents want to know if they will be responsible for my college student loans?

Parents are only responsible for the Federal PLUS loans and if they co-sign for your loan. Typically, you will be responsible for your college student loans.

Q: What happens if I have to take off a semester? Will I have to start paying back my student loans immediately?

A: Not usually, no. The subsidized Stafford loan has a grace period of 6 months while the Perkins loan has a grace period of 9 months. You will not have to begin repaying the loan(s) until the grace period expires. Be aware; however, that if you use up that grace period before you graduate, you will need to begin repaying immediately upon graduation. You may be able to request an extension on the grace period but you will need to make sure you do this before the grace period actually expires.

Q: I took out several student loans while I was in college. Now that I have graduated and my grace period has expired, I have to pay them back and am having a hard time making the payments. What can I do?

A: A consolidation student loan can help you roll several loans into one loan; reducing interest and monthly payments. You will have less paperwork to deal with each month and the payments can be lowered to make them more manageable.

Q: What happens after I finish school? Will I have to start paying back my loans immediately?

A: Generally, repayment depends on the type of loan(s) you have. Subsidized Stafford loans have a 6 month grace period in which you do not have to pay back any principal on the loan and no interest is charged. If your loan is unsubsidized, you won't be required to begin making payments during the grace period, but interest will accrue. With a Perkins loan, there is a 9 month grace period following graduation.

Q: What do I do if I can't pay back my loans?

A: If you have not already defaulted on your loan, there are several options available to you. Default means you have not made payments in 9 months. Changing to a repayment plan you can afford is one good option. Some loans offer repayment plans that are based on your income. You may also be able to defer, or postpone, your payments. Consolidating your loans can also help you reduce interest and monthly payments.

Q: What kinds of deferments are available ?

A: Typically, deferments depend on the type of loan you have. For most loans; however, common deferments include:

•  Economic hardship deferments granted for one year at a time for a maximum of 3 years

•  Graduate fellowship deferments

•  Student deferments if enrolled at least half-time

•  Unemployment deferments for a maximum of 3 years

Q: What is a student loan consolidation?

A: Student loan consolidation allows you to lower your monthly payments by combining several loans into one single loan. You can also extend your repayment term and may be able to lower your total interest rate.