National Application Center :: pay for college
Plan, explore, and apply to college using these great tools.
Types of Aid
Federal Loan Programs
Federal Perkins Loans
These federal loans are administered by colleges and universities. They offer the best interest rate structure and students don't begin repayment until after they graduate or leave school. The amount a student may borrow depends on the funds available at the college he or she attends. Federal Perkins Loans are typically reserved for students with substantial financial need.
Federal Stafford Loan Program
Students enrolled at least half time can borrow through this program. Repayment terms are worked out between the student and the lender, and may be deferred temporarily if the student is enrolled at least half time, is studying in an approved graduate fellowship program, or has encountered economic hardship.
Subsidized Federal Stafford Loans
Students with demonstrated financial need may use these loans to borrow money from lenders at interest rates lower than most commercially available loans. A great benefit of these loans is that the government pays the interest while the student is enrolled! Repayment begins six months after the student graduates or leaves school.
Unsubsidized Federal Stafford Loans
Even if you don't qualify for a subsidized Stafford Loan (or if you need more money than you could borrow through that program), you can use an unsubsidized Stafford to help meet college expenses. The big difference is that repayment begins as soon as the loan is disbursed, or, if you defer repayment until after graduation, you'll still be responsible for the interest accrued from the time the loan was disbursed.
Federal Direct Student Loan Program (FDLP)
These loans are available only at participating colleges; contact the colleges you are considering to find out if FDLP is offered. Federal Direct Loans can be subsidized or unsubsidized and the conditions are the same as for Stafford Loans. The federal government is the lender. Check with the appropriate college financial aid office(s) for information on how to apply.
Federal PLUS Loans
PLUS loans are not need based. They are available to parents of eligible students who want to finance any amount between the amount of aid the student has already been given and the total cost of attendance. Note: you'll need a good credit history to qualify.
College-sponsored Loans
Many colleges provide short-term, long-term, or emergency loans to qualified students on their campuses. Check with the financial aid office at the appropriate college(s) to find out more.
Other Loans
Some families consider home equity or other types of loans to finance college costs. While the student loans mentioned previously offer what are likely to be the best terms and conditions, remember they are not the only option.