Student Financial Aid

Discover your student financial aid options

Student financial aid is a fact of life for many college students in the United States. Rising tuition and living costs make the financial aid and student loan office a very busy place to be at the beginning of the school year.

To meet your needs, there are several federal student financial loans available, which are designed to help you meet your educational costs. They offer flexible repayment terms and limitations on interest charges, so you should investigate these student loans if your savings and scholarships aren't going to be enough to cover all your costs.

National Student Financial Aid Programs

As a student service for financial aid, there are three major loan types: Stafford loans, Perkins loans and PLUS loans. They are intended to serve as both undergraduate and graduate student financial aid sources.

Stafford loans can be subsidized or unsubsidized and come from two different funding sources. FFEL Stafford loans are funded by banks or credit unions, while Direct Stafford loans come straight from the government itself. Interest rates are modest and are tied to the country's prime rate, and students don't have to start paying back these loans until a grace period following the cessation of studies has passed.

Perkins student financial aid packages are funded directly by the school and are paid back directly to the school. To get a Perkins loan, you must be enrolled in at least six credits during any given semester. Students who have earned Pell grants get top priority when it comes to assessing who does and does not qualify for a Perkins loan.

PLUS loans are made to the parents of the student, not the student her- or himself. They are the only loans that require a credit check, but they give the student's parents the security of knowing that the money will be administered responsibly.

To qualify for any of these loans, you must be a U.S. citizen or legal resident. International student financial aid may be available to students from other countries at some colleges, but it's more common for international students to seek private loans or education grants from their home countries.

Alternative Funding Sources to Explore

There are many private lending companies that offer student financial aid products, often featuring terms similar to the flexible features of Stafford and Perkins loans. If you do not qualify for school- or government-based loans, contact your financial aid office for more information on resources that might provide the help you need. As a last resort, many banks and credit unions offer student loans.