What are Student Loans?
While both the federal government and private institutions offer student loans, federal loans have benefits like fixed interest rates and income-driven repayment plans. Before looking into private loans, you should explore all your options for federal student aid. Find out how much you qualify for by filling out a Free Application for Federal Student Aid (FAFSA).
- Direct Subsidized Loans (also known as Direct Stafford Loans or Stafford Loans) Students with a demonstrated financial need may qualify for subsidized student loans. In this type of loan, students do not have to pay interest on loans while enrolled or during a six month grace period after graduation.
- Direct Unsubsidized Loans Regardless of financial need, all students qualify for unsubsidized loans. With this type of loan, students are responsible for making interest payments on loans while enrolled.
What loans you qualify for vary based on financial need, how many credit hours you have, and whether you are an independent or dependent student. Continuing and transfer students may apply if they have earned the required number of hours each year with a grade point average of at least 2.0. If you’re a first time borrower who has earned less than 30 hours, you won’t receive any funds until you’ve attended classes for 30 days.
You’re an Independent Student if you’re one of the following:
at least 24 years old married have legal dependents other than a spouse a graduate or professional student a veteran or a member of the armed forces an orphan a ward of the court an emancipated minor or someone who is homeless or at risk of becoming homeless
If you don’t meet the following criteria, you’re considered a dependent student, and your parents might qualify for a PLUS loan.
Qualifying for Student Loans
No matter the type of loan, you must be enrolled for at least 6 credit hours to qualify for federal student loans. Continue reading “Student loans are funds borrowed to pay for tuition and other university expenses, and must be repaid with interest”