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Student Loans are borrowed money, which must be repaid with interest. Students can be studying for undergraduate or graduate degrees to be eligible for a loan. Parents of students may also borrow money to help pay for the educational expenses of dependent undergraduate children.
Students demonstrating the greatest financial need are eligible for Federal Perkins Loans. These loans are funded by the federal government, but repaid directly to the school. Students are also eligible for Stafford Loans, while parents of students can apply for PLUS loans. Student loans are made available through two programs:
William D. Ford Federal Direct Loan (Direct Loan) Program: Loans are made directly from the federal government, and are repaid to the Department of Education. The student loans in this program include:
- Direct Stafford Loans
- Direct PLUS Loans
- Direct Consolidation Loans
Federal Family Education Loan (FFEL) Program: Loans made through private lenders, with funding guarantees from the federal government. Loans are repaid directly to the private lending institution. The student loans in this program include:
Student loans are one of the three forms of financial aid available to students. The other two forms of student aid are grants and work study. |
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