Loans allow you to borrow money for your education. Student loans, unlike grants and work-study, are borrowed money that must be repaid, with interest, just like car loans and mortgages. Loans are also legal obligations, so before you take out a student loan, think about the amount you’ll have to repay over the years. For more information regarding Federal Student Loans, please visit the www.FederalStudentAid.ed.gov website.

There are two types of Stafford Loans: Subsidized and Unsubsidized

Federal Subsidized Stafford Loan

• U.S. Department of Education pays interest while borrower is in school and during grace and deferment periods
• You must be at least a half-time student ( 6 credits)
• Have a financial need
• The amount varies between $3,500 to $8,500 depending on grade level

Federal Unsubsidized Stafford Loan

• Borrower is responsible for interest during life of the loan
• You must be at least a half-time student (6 credits)
• Financial need is not a requirement.
• The amount of the loan will vary between $3,500 to $20,500 depending on grade level and dependency status

Currently, there is a fixed interest rate of 6.8 percent for loans first disbursed on or after July 1, 2006.

You may apply for your Federal Stafford Loan(s) through any of the following websites:

• AES
• USA Funds
• Great Lakes