Loan Types
Stafford | PLUS | Alternative Loans | Federal Direct Loans Frequently Asked Questions
Stafford Loans
Stafford loans are low-interest loans available to undergraduates and graduate students who are attending school at least half-time. There are two types of Stafford loans: subsidized and unsubsidized. Loan amounts are limited based on grade level. Please see your financial aid award notice for the amount you are eligible to borrow in a Stafford loan. Click here for Loan Limits.
Benefits:
- No credit check required
- No income or asset requirements
- Interest may be tax deductible
- Flexible repayment options
- No pre-payment penalties
Subsidized Federal Stafford Loan
This loan is available to students who can demonstrate financial need as determined by a federal formula. "Subsidized" means the government pays the interest on this loan while the student is in school and during authorized deferment and grace periods.
Unsubsidized Federal Stafford Loan
This loan is available regardless of need. "Unsubsidized" means that the student is responsible for interest as soon as the loan is obtained. Interest may be paid as it
Additional Unsubsidized Federal Stafford Loan
This loan is available to dependent students if their parents have been denied for a Parent PLUS loan. Independent students are also eligible. Amounts depend on grade level, and the difference between your cost of attendance and total financial aid received.
- How do I apply?
- What is the interest rate for the Stafford loan?
- What fees will I be charged for my Stafford loan?
- How will the money be disbursed?
- What are the repayment terms of a Stafford loan?
- What if I would like to cancel my loan?
PLUS Loans
Federal PLUS Loans are available to parents who wish to help their child pay for college. With a PLUS Loan, parents may borrow up to the full cost of a student's education, including tuition, room and board, books and supplies, transportation, and living expenses, less other financial aid received.
Graduate students are also eligible to apply for a PLUS loan. The Grad PLUS borrower is required to apply for their annual Stafford loan maximum first. The Financial Aid Office will determine the student's eligibility for their Stafford Loan maximum before applying for a PLUS Loan. However, the student borrower is not required to accept these funds before applying for a Grad PLUS Loan.
Features and advantages:
- Low fixed interest rate (7.9%)
- No pre-payment penalty
- No income or asset requirements
- Take up to 10 years to repay
- Interest may be tax deductible
- Parents may apply to defer payments for up to 4 years (one year at a time)
An Endorser Can Help You Qualify
Applicants who are not PLUS eligible based on their own credit may become PLUS eligible if they obtain an endorser for the loan. The endorser must be a creditworthy U.S. citizen, permanent resident, or other eligible non-citizen. If you get an endorser for your PLUS Loan, you must sign a new Master Promissory Note and the endorser must sign a new Endorser Addendum for each loan requested during the period in which you have adverse credit.
- How do I apply?
- How much can my parents borrow in a PLUS loan?
- What is the interest rate for the PLUS loan?
- Are there any fees associated with the PLUS loan?
- How will the money be disbursed?
- What are the repayment terms of a PLUS loan?
- What if my parents would like to cancel their PLUS loan?
Private student loans (also known as alternative student loans or personal student loans) can help you pay for college, generally at better interest rates than other lines of credit.
You should only use private student loans as supplemental funding after you have exhausted all other sources of financial aid.
As with any student loan, be conservative and only borrow what you absolutely need.
What Are the Advantages of Private Student Loans?
- Most private loans allow you to apply with or without a cosigner.
- Ability to cover any need unmet by Federal student loans.
- Most programs have variable interest rates that are based on your credit tier.
For information about interest rates (prime, libor, & t-bill) see “Definitions” and “Current Interest Rates” on Finaid.org.
Other Resources
