The Federal Family Education Loan Program offers several types of student loans - Subsidized Stafford, Unsubsidized Stafford, Federal PLUS Loan (parent loan), and a Federal Loan for Graduate and Professional Students (GradPLUS). Interest rates are affordable, and special repayment options are available. The money you borrow must be used for school expenses such as tuition, fees, books, supplies and housing.

Although many programs are designed specifically to help needy students attend college, all students enrolled in an eligible institution are entitled to receive financial assistance from the federal government to defray the cost of attending college. While millions of dollars in grants and scholarships, which do not need to be repaid, are awarded to students of various academic and financial backgrounds, many individuals still rely upon student loans to pay for at least a portion of their education.

Subsidized Stafford Loan
Eligibility is based on need. Your interest rate is fixed (for loans first disbursed on or after July 1, 2006). The federal government pays your interest while you are in school at least half time and during your six-month grace period. You begin making regular monthly loan payments (principal and interest) six months after you graduate, leave school or drop below half-time enrollment. Deferments or forbearances (temporary suspension of repayment) can be requested if a student returns to school or experiences a period of exceptional economic hardship.

Unsubsidized Stafford Loan
Eligibility is not based on need. This loan is available to all eligible students, regardless of income. The interest rate and terms for this loan are the same as the subsidized Stafford loan; however, students are responsible for paying the interest that accrues while enrolled in school and during any grace period or deferment. You begin making regular monthly loan payments (principal and interest) six months after you graduate, leave school or drop below half-time enrollment.

Federal PLUS Program (Parent Loan for Undergraduate Students)
The federal PLUS program is for parents, step-parents, or legal guardians of dependent undergraduate students and is based on credit-worthiness.  Under this program, parents may borrow up to the cost of education at a particular institution minus any financial aid that a student receives. The interest rate is variable with a cap of 9%. Repayment of a PLUS loan begins within 60 days of final disbursement and can take up to 25 years based on the total outstanding balance, through available consolidation programs.

GradPLUS Loan
Graduate and professional students are now able to supplement the limited amount of Stafford loans available for post-graduate study with Federal PLUS loans! Under new federal legislation, graduate and professional students can get PLUS loans beginning with the 2006-07 academic year. Eligible students can borrow up to the cost of education minus other aid received. Best of all, the student is the borrower - not the parent! Creditworthiness is a factor, but debt-to-income or credit scoring are not used. If you are denied based on adverse credit, you may obtain a credit-worthy endorser who is secondarily responsible for the loan.