Loans—Federal Stafford Loans

These are loans from a bank. The Federal government acts as your co-signer. The basic terms of the loans are the same at all lending institutions. Options that can vary are the quality of service (making and collecting the loan) and incentives or options for loan repayment. Depending on the amount you borrow, you may be dealing with your student loan lender or their servicer for many years.

The Financial Aid Office recommends certain lenders because of their high level of service and commitment to the student loan program.

Subsidized vs. Unsubsidized Loans: There are two types of loans, subsidized and unsubsidized.

• Subsidized loans: the government will pay interest while you are in school and for authorized deferment periods. Qualification for the interest subsidy is based on financial need.
• Unsubsidized loans, which are not need based: charge the interest to you for the entire life of the loan. You are responsible for either paying as it accrues, or adding it to the amount you borrowed and repaying after you leave school.
  Unsubsidized loans are available to anyone who meets the basic financial aid eligibility requirements.

Loan terms: Interest is a fixed rate of 6.8%. For Undergraduate students  borrowing a Subsidized loan, the rate is 6.0% effective 7/1/2008-6/30/2009.

The Standard repayment term can extend over a ten year period. Extended repayment options beyond 10 years are also available.