Student Loans
After exhausting all scholarship opportunities, most students need some form of financing for their education. Almost two-thirds of student aid - about $50 million - comes from low cost federal student loans. These programs provide advantages over consumer loans but they also have qualifications that may not be met by every student.
The most common types of federal student loans are:
- Federal Stafford Loans
- Federal PLUS loans
- Private Student Loans
Federal Stafford Loans
These loans offer an interest rate of 6.8%, there are no credit checks or collateral needed. Repayment does not begin until after the student leaves school. The interest paid may be tax deductible (consult with your tax professional). There are no guarantee fees or prepayment penalties.
Federal Plus Loans
The PLUS loan (Parent Loans for Undergraduate Students) is for parents with undergraduate and graduate students. As a parent you may borrow up to 100% of the education costs of college at a favorable rate of 8.5%. PLUS loans are not need or income based so you won't be turned down for making too much money. There are several repayment options including deferral while your student is enrolled in school. The PLUS loan requires a credit check and may be applied for at anytime during the school year.
Private Student Loans
Unlike federal student loans, the proceeds are sent directly to the applicant. There are no deadlines or income criteria. The student may apply for the loan directly without a co-signor allowing the parents to provide a 'fall-back' option if some financial emergency arises. You can get free, no-obligation advice on if a private loan is the best alternative for you by completing our private student loan application.
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