Loans
A loan is a form of financial aid that must be repaid with interest. The main loan options are student loans, parent loans, and private loans. Federal and state loans include:
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Federal Perkins Loans - These are available to students who demonstrate the most serious financial need. They are federally funded and awarded by the school. These loans have the best terms and conditions; however, they are usually small in amount due to limited funds.
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Federal Stafford (Subsidized and Unsubsidized) Loans - These loans are awarded on the basis of financial need and are regulated by the federal government. Students may be borrowing from a bank, a credit union, or directly from the government. A subsidized Stafford Loan is the loan of first choice, since the government pays the interest while students are in school. Students who do not qualify for a subsidized Stafford Loan may take out unsubsidized Stafford Loans. These students are responsible for paying the interest while still in school, but may postpone payment of interest and principal until after graduation.
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Federal PLUS Loans - These loans are for parents of undergraduate students. They are based on credit history and require a credit check. The interest rate is low, but repayment begins immediately.
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Federal Graduate/Professional PLUS Loans - Graduate or professional students are now eligible to borrow under the PLUS Loan Program up to their cost of attendance minus other estimated financial assistance. The terms and conditions applicable to parent PLUS loans also apply to Graduate/Professional PLUS loans. The student's credit history is checked and repayment begins on the date of the last disbursement of the loan. Applicants for these loans are required to complete the Free Application for Federal Student Aid (FAFSA).
For additional information regarding this loan please visit: www.uheaa.org/parentStudent01f.html and click on Graduate/Professional PLUS Loans.
