This page may serve as your introduction to student loans. All loans are funds that you borrow and will repay with interest. When possible, you want to receive the lowest interest rate available because that will determine how much interest will accrue (accumulate) on your loan. The interest rate for a loan is set by the loan servicer and can be fixed or variable. Loans that come with variable interest rates are subject to change at the loan servicer’s discretion. Loans with fixed interest rates, such as the Direct Stafford Loans, have the same interest rate until the loan is paid.
The FAFSA is an application that we use to determine your federal loan eligibility. These loans are funded by the federal government, and are referred to as Federal Direct Stafford Loans. There is a limit set on how much you can take out each year as a student, which is addressed in the “During” section.
We recommend that you do not borrow loans if you do not need to; the less debt that you take on during college, the better. We also understand that you may not have alternative payment options. If you choose borrow loans, you must be prepared and informed, so that you understand to the responsibility that you are taking on.
As an incoming student, all communications will be coming to you directly – including financial information. Once you complete the FAFSA you will be provided with a lot of information and terminology that may be new to you. These terms are important to know, not only because our office will use them in communications with you, but they help you to understand what your options are.
The Federal Student Aid website offers a Financial Aid Glossary. You can use it to interpret whatever terminology you have questions about.
|Website which aids you in understanding the different types of federal loans|
Information is subject to change without notice based upon changes in federal regulations.