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What kinds of federal student loans are available?
Stafford loans are for undergraduate and graduate students. There are two types of Stafford
loans: subsidized and unsubsidized.
• Subsidized Stafford loans provide low interest rates and are available to students who demonstrate financial need based on income and other information provided on the FAFSA.
A credit check is not required to receive these loans. The federal government pays the interest on these loans until six months after the student is no longer enrolled in school at least half time.
• Unsubsidized S tafford loans provide low interest rates and are available to all students regardless of financial need (although the FAFSA still must be filed). A credit check is not required to receive these loans. The student is responsible for the interest, which may be paid while the student is in school or accrued and then added to the principal balance when the student enters repayment, which occurs six months after the student is no longer enrolled in
school at least half time.
Plus loans are low interest loans that parents can obtain to help pay the cost of education for their children. In addition, graduate students may obtain PLUS loans to help pay for their own education.
PLUS loans require a credit check and, in some instances, an eligible cosigner. Repayment of PLUS loans begins following the final disbursement for the year. Graduate students may be able to defer repayment of their PLUS loans until after the student is no longer enrolled in school at least half time, although interest will continue to accrue.
Consolidation loans allow student or parent borrowers to combine multiple federal student loans into one loan with one monthly payment. A federal consolidation loan cannot include private loans.
However, some private lenders may offer consolidation loans. Borrowers should be aware that they will lose their federal borrower benefits if they consolidate their federal student loan into a private consolidation loan. Borrowers should always exhaust federal student loan options first before considering
a private consolidation loan.
• Allow students and their parents to borrow money to help pay
for college through programs supported by the federal government.
• Offer lower interest rates and better repayment benefits and options
than private student loans.
• Are available to students and parents who need help paying for
college—in many cases, regardless of income level or credit history.
Students and parents should always exhaust federal student loan
options first before considering a private loan. To apply for a federal
student loan, complete our online tool, the Free Application for Federal
Student Aid (FAFSA), at www.fafsa.ed.gov.
For additional information on the federal student aid programs,
consult the Department of Education’s free publication Funding
Education Beyond High School: The Guide to Federal Student Aid,
which may be obtained by visiting www.federalstudentaid.ed.gov/pubs
or calling 1-800-4-FED-AID. Federal Student Loans
English as a Second Language , Colleges & Universities in Pennsylvania
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Change in US loan process will
