The federal student loan program is supported by the federal government. Generally, repayment of a federal loan does not begin until after the student leaves school. Federal student loans can be used to pay school expenses such as tuition and fees, housing, books, supplies and transportation.
Private student loans are non-federal loans issued by lenders such as banks and credit unions. Most private loans carry a variable interest rate and require a credit check. Many of the federal loan benefits are not offered with the private loans such as; fixed interest rates, income based repayment plans, and loan deferment and forgiveness options. We recommend that you first apply for the federal student loans before the private loans.
- Direct Loans – For undergraduate and graduate students. A credit check is not required for this loan. They have an automatic six-month grace period after the student leaves school and before the first payment is due.
- Subsidized: The federal government pays the interest on these loans while the student is enrolled at least half-time and during the six-month grace period.
- Unsubsidized: This loan is available to all students regardless of financial need. The student is responsible for the interest, which may be paid while in school or accrued and then added to the principle balance when the student enters repayment
- Parent PLUS loans – Parents can obtain this loan to help pay the cost of education for their dependent children. This loan requires a credit check and in some cases an eligible cosigner. Repayment may begin after the final disbursement for the term. Deferment options are available.
- Grad PLUS loans – Graduate students may obtain this loan to cover educational expenses not covered by their Direct loans. This loan requires a credit check and in some cases an eligible cosigner. Graduate students may be able to defer repayment of their PLUS loans until after the student is no longer enrolled in school at least halftime. Interest will continue to accrue. For Logan students you will need to reapply for this loan each award period.