Student Loans
Putting the pieces together
Need a loan to help pay for college? Start by completing and submitting a Free Application for Federal Student Aid (FAFSA). Schools and colleges use information from the FAFSA to determine if you are eligible to receive federal and/or non-federal student aid from grants, loans and work-study programs. Be sure to answer “yes” to the question that asks if you want to be considered for a student loan. The application deadline is June 30, so you still have time to submit, but be aware many college and state deadlines are earlier in the year.
What loans are available?
There are campus-based aid programs such as the Federal Perkins Loan program. These low-interest loans are administered by the financial aid office at each participating school. The school is the lender. The Federal Perkins Loan is based entirely on need and the availability of government funds at each school. The maxi-mum annual loan disbursement is $4,000 for undergraduates and $6,000 for graduates.
Other loan programs administered by the U.S. Department of Education include the Federal Family Education Loan (FFEL) and the William D. Ford Federal Direct Loan (Direct Loan) Programs. These loan programs consist of the most widely used loans in the education program—Federal Stafford Loans (for students) and the PLUS Loans (for parents and graduates). Colleges generally participate in either the FFEL or Direct Loan program but sometimes participate in both. The funds for the Direct Loan Program come directly from the federal government and are made directly to students. Funds for the FFEL can come from your Credit Union or other lenders that participate in the program.
