The Federal Direct Student Loan Program offers Unsubsidized (interest accrues while in school) Stafford loans. These loans are available regardless of income or financial need. Students are eligible for up to the cost of attendance, minus any additional aid, such as company tuition reimbursement, with maximum of $20,500 per academic year.
Certain basic federal requirements apply:
- Student must be a citizen or an eligible non-citizen
- Male students must have satisfied the selective service requirement
- Student must not currently be in default on any federal loans
- Under the unsubsidized loan program, interest can be paid (at least a partial payment is highly recommended), or payment may be deferred until the student goes into repayment 6 months after graduation or withdrawal. Note that interest starts to accrue right away, and continues to accrue during this 6 month ‘grace period’. If interest payment is deferred, the student will have the opportunity to pay accumulated interest upon going into repayment. Interest left unpaid at that point will be capitalized and become part of the loan amount.
If a student still has unmet needs after Stafford funds have been exhausted, the Federal Direct Student Loan Program also offers the Grad PLUS loan. To apply, a student must not have “adverse” credit. If a student’s credit score is lower, a co-signer would be required.
Private educational (“alternative”) loans are an option, as are private bank loans for education. These are both based on an individual’s credit history. Contact the Financial Aid Office for further information on any of these loan programs.
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