Applying For A Loan
If your financial aid package includes loans, it's best to understand what types are available and what loans may be better for your situation.
Step 1
Once you've completed your FAFSA and your aid package has been determined you will receive an awards letter. In it will outline exactly what your options are, how much of each loan is available to you and what you are expected to contribute out of pocket.
Step 2
At this point although you have been approved for federal aid you must complete an Application & Master Promissory Note for each loan type. This can be done through your school or with your lender of choice by:
- Printing and mailing in your application.
- Through the web by applying online. Once complete we will guide you through creating an online account and signing electronically.
Loan Options
Subsidized Loans
Perkins
Stafford
Graduate School
Parent PLUS
Private Loans
Subsidized Loans
Some federal loans (Stafford) come with an interest subsidy. This means that during times of grace & deferment the interest will not accumulate or capitalize on your loans. Instead, each period the interest rate is paid for you. Subsidized loans are typically awarded to students that demonstrate a greater financial need. The impact of subsidized vs. unsubsidized is typically referred to as compounding interest and can mean the difference in repaying thousands more on an unsubsidized loan. Depending on qualifications subsidized loans are available up to $5,500 for undergraduates and $8,500 for graduate and professional students.
Perkins Loans
Typically awarded and administered by your school, Perkins Loans carry a few distinct benefits:
- 9 month grace period
- fixed rate of interest at 5%
- forgiveness for some teachers.
If a Perkins Loan is offered in your awards package, this is typically the first loan for you to use. The benefits of a longer grace period (3 months more than Stafford) and a lower fixed rate make it a very attractive loan. Weigh the benefits though as you may pay more in overall interest with an unsubsidized Perkins than you would with a subsidized Stafford Loan.
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