Students and/or parents can borrow money through the Department of Education’s loan programs. These loans are not credit based; everyone qualifies for the loans regardless of credit history. The interest on the loans are paid for by the government while the student is attending classes. No payments are due until 6 months after graduation. The current interest rate on these loans is 5.05% (2018/2019 award year)
Subsidized: Based on financial need as determined under federal regulations. Loan does not Accumulate interest while you are attending school, during the six-month grace period, or during deferments.
Unsubsidized: Not based on family income. Interest is charged the day the loan is credited to the Account. You may begin to pay the interest while you are in school, during the grace period, or during deferment. You also have the option of capitalizing the interest.
Parent Plus Loans:
Non-need-based loan. Available to parents of dependent students to contribute to their child’s education. Parent is responsible for all interest 7% and payments. Parent Plus Loan will become part of financial aid package.