The federal government provides the following loan programs (except the Alternative Loan Program). Student interested in participating in any of the programs must file a FAFSA form annually for each year they attend school, meet the financial need requirements, be in good academic standing and have achieved satisfactory academic progress.
Direct Subsidized Loan
Subsidized Loans are interest free; the government pays the interest while you are enrolled at least half-time and during the six-month grace period. You must repay the entire loan amount, which begins six months after you graduate. Maximum award: $3,500 for the first year.
Direct Unsubsidized Loan
Unsubsidized loans are loans that you must re-pay. The interest is added to the unsubsidized loan while you are in school. The entire loan amount plus all of the accumulated interest must be paid back, beginning six months after you graduate. Maximum awards: dependent students - up to $1000; independent students - up to $6000 for the first and second years and up to $7000 for the third and fourth years.
Direct Parent and Grad PLUS Loans
The Parent/Grad PLUS Loan is a government-backed, no collateral necessary loan available to parents of dependent, undergraduate students and graduate students. The Parent/Grad PLUS Loan is not need based, but requires credit approval. Repayment of the Parent/Grad PLUS Loan begins 60 days after the second disbursement has been sent to the college. Graduate student interested in a PLUS Loan must also complete the online entrance counseling at www.studentloan.gov. Maximum award: up to cost of attendance less other aid.
The Federal Work-Study Program provides jobs for students with financial need, enabling them to earn money to help pay education expenses. Students participating in the Federal Work-Study program must maintain satisfactory progress, with a GPA of no less than a 2.0. Annual award: up to $3,000.
Private Educational Loans
Students who are not eligible to receive federal direct loans can apply for an alternative or private educational loan. Students must select a bank, complete the bank's online application and credit check. Alternative and private loans are credit-based and students planning to apply for a private education loans should review their credit report since credit worthiness is a requirement for these funds. Maximum award: up to cost of attendance less financial aid.