Federal Student Loans

Federal Student Loans - Always Apply for Federal Loans First

Always apply for federal loans before applying for other private student loans. The federal government provides a number of loan programs intended to help students and parents finance the cost of education.1 Most of these programs are not credit based and usually feature lower interest rates than private loans or credit cards. The federal education loan programs offer lower interest rates and more flexible repayment plans than most consumer loans, making them the first types of loans you should consider and apply for first Qualification for federal student loans is dependent on financial need.* Your student finance specialist can assist in providing access to the Free Application for Federal Student Aid (FAFSA) which will determine if you qualify for one of the following federal loans:

Entrance and exit counseling for education loans

You must complete both entrance and exit counseling as a condition of receiving any federal loan awards. Information on these processes is available from your student finance specialist.

Repayment of your Federal student loans - Don't default

If you are a federal student loan recipient, there are two key points to remember:

The interest you pay is lower than commercial/private bank rates because the federal government subsidizes the rate.
If you are a student borrower, you don't have to begin repaying your Perkins or Stafford Loans until you leave school or become less than a half-time student.

As generous as these terms are, you shouldn't forget that you have to repay your loans. Failure to do so will result in your loans being declared delinquent or in default. This will have a negative impact on your financial status and creditworthiness in the future.

Defaulting on your federal student loans can have serious consequences. Learn more about the risks and repayment options.

Federal student financial aid penalties for drug law violations

A conviction for any offense involving the possession or sale of illegal drugs, during a period of enrollment for which you receive Title IV federal student aid, may result in the loss of future financial aid eligibility. If you are convicted of possessing or selling drugs after you submit your Free Application for Federal Student Aid (FAFSA), you must notify your Financial Aid Administrator immediately.

If a student successfully completes a drug rehabilitation program, the student may regain federal student aid eligibility on the date the program is successfully completed. For further information, please contact 1-877-801-1025.

*Financial aid is available to those who qualify