So, which loan is right for you?

Be sure to talk with the lender that you choose about these loans. In addition to your own conclusions of which one is best for you, they can help walk you through the details of each.

Federal Stafford Loans

There are two types of Federal Stafford Loans—Subsidized Stafford Loans and Unsubsidized Stafford Loans. Repayment begins six months after you graduate (in-grace), drop below half-time or leave school. Though there is a small difference in the interest rate, the real difference is whether you or the federal government pays the interest on the loan while you are in school, in-grace or during any authorized period of deferment. Read on to see if you qualify.

• Subsidized Stafford Loan: The federal government pays the interest while you’re in school, in grace, or any authorized period of deferment. Eligibility is based on family income, assets, cost of attendance and any financial aid you may receive. Loan limits are set by the federal government under Title IV of the Family Education Loan Program.
• Unsubsidized Stafford Loan: You are responsible for paying the interest that accrues while in-school, in-grace, or during any authorized period of deferment. Eligibility is based on family income, assets, cost of attendance and any financial aid you may receive. Loan limits are set by the federal government under Title IV of the Family Education Loan Program.

PLUS Loans

• Parent (PLUS) Loans – Parent (PLUS) Loans are available to parents of undergraduate students and approval is based on the parent’s and student’s credit history. The amount that is available to borrow is based on the cost of attendance minus any financial aid you may receive. PLUS loans are fixed at 8.5%.* Parent(s) are responsible for the interest from the date of disbursement, and repayment begins 60 days from the last disbursement.
• Graduate/Professional (PLUS) Loans – Graduate/Professional (PLUS) Loans are available to graduate and professional students and approval is based on student’s credit history. The loan is based on cost of attendance, less any other financial assistance that is received. Students are responsible for all interest beginning from the date of disbursement, and repayment begins 60 days from the last disbursement. This loan, too, is a fixed rate loan starting at 8.5%.* Loan limits are set by the federal government under Title IV of the Family Education Loan Program.

Consolidation Loans

Consolidation loans often make it easier for the borrower. Consolidation loans are available to a borrower that is in-grace or is repaying student loans. The loan limit amounts are determined by adding the balances of eligible education loans. The borrower is responsible for all interest and repayment of the loan. The maximum repayment period: up to 30 years. The rate is determined by the weighted average of the rates of all eligible loans, rounded up to the nearest eighth of one percent, not to exceed 8.25%* fixed. (In other words, the rate for a consolidation loan will vary. Please contact us for information on current rates.)

(Want more information? Click the chart below to download a copy of the latest version of our FFEL Chart. The FFEL Chart goes into much more detail about each loan available, and will help you determine which loan is right for your situation.)

*Rates and Fees are effective on or after July 1, 2008. (See FAFSA for full disclosures)

Online Financial Tools

Here are some tools that may help you in your decision for which loan is right for you. (You can always come back to these later.)

Student Loan Calculator - This calculator will allow you to estimate your payments on any federal student loans, as well as determine how much salary you’ll need to support your student loan debt.

Loan Consolidation Calculator - This calculator will allow you to estimate your repayment period, interest rate (the weighted average interest rate of the loans to be consolidated, rounded up to the nearest 1/8th of one percent, not to exceed 8.25 percent), and your repayment schedule if you consolidate (up to 16 loans to be consolidated).