STUDENT LOANS

During the 2005-06 academic year, students borrowed nearly $69 billion from the federal government and private lenders.

There are 2 sources of student loans: (1) the federal government and (2) private lenders. Most student loans provided by private lenders are guaranteed by the federal government.

There are three (3) student loan programs–(1) Federal Perkins Loans, (2) Federal Family Education Loans (FFEL), (3) Direct Loans, and two (2) loan programs for parents of dependent students–the Federal Family PLUS Loans, and the Direct PLUS Loans.

The GOODS on student loans…

• Students can borrow directly from the federal government or through hundreds of private lenders
• Nearly every high school student is eligible for student loans, regardless of financial situation and credit score
• Your parents can borrow the money on your behalf (if their credit score qualifies)
• Applying for federal student loans is FREE
• Complete ONE application to apply for thousands of dollars in grants, scholarships and loans
• The Fed will pay the interest on some student loans (for students with significant financial need)
• You can put off paying loan interest until they graduate or leave college
• You don’t have to make your first loan payment until you graduate or leave college
• Interest rates on student loans are lower than those on any other type of loan
• Repayment plans can be very flexible, especially if you go with a private lender

Here’s a quick overview and comparison of the student loans.

For more information on student loans, download a Free Guide to Federal Student Aid (PDF), or call the Student Financial Aid Hotline at 1-800-4-FED-AID (800-433-3243).