Federal Student Loans Guide

While a college education can certainly be expensive, there are numerous federal student loans that can help defray the cost. The types of federal student loans include:

• Federal Perkins Loans-These loans are made through colleges and universities to undergraduate, graduate and professional students
• Stafford Loans-Intended for undergraduate, graduate and professional students. Issues through two U.S. Department of Education programs: the William D. Ford Federal Direct Student Loan Program and the Federal Family Education Loan (FFEL) Program.
• PLUS Loans-Loans which parents can take out for dependent undergraduate children.

When considering the many different types of federal student loans it is important to consider the major points of each type of loan.

Federal Perkins Loans

• Students are not required to be enrolled at least half time, as with most other federal student loans
• Undergraduate students able to borrow up to $4,000 per year; graduate students can borrow up to $6,000 per year.
• Repayment terms up to 10 years based on amount owed.

Stafford Loans

• Must be enrolled at least half-time
• Award amounts depend on student's dependency status and grade level in school; first year, second year, etc.
• Students with financial need may be eligible for the government to pay interest during school
• Repayment terms between 10 and 30 years based on amount owed

PLUS Loans for Parents

• Must be enrolled at least half time
• Subject to credit approval
• Award amount based on cost of attendance minus other aid received
• Not eligible for government payment of interest

PLUS Federal Student Loans for Graduate Students

• Must be enrolled in a graduate studies program
• Must have previously applied for maximum annual amount available under subsidized Stafford Loan
• Subject to credit check
• May defer payments while in school
• Fixed, low interest

Not sure which of the many federal student loans is right for you? Let us help you get started. We can assist you in getting started with the application process.