Many students need financial assistance in order to pay for tuition. When considering student loans, there are many options including federal and private loans. Before applying for a loan, it is important to consider

which loan is right for you.

Federal Loans: The Options

• Stafford Loans: regulated by the government; usually accompanied by low interest rates; interest is paid until end of pre-determined grace period
• Perkins Loans:smaller than Stafford loans; must apply for a Pell grant first; interest rates generally around 5%, and payment period is negotiable
• PLUS Loans: not federally subsidized and therefore have higher interest rates
• Parent PLU: these loans cover total amount of tuition; repayment is soley the parent’s responsibility
• Graduate PLUS: for those that are in graduate or professional-level degree programs, this loan is ideal; repayment is soley the graduate student’s responsibility

Private Loans: The Options

• Loans given by private institutions, individual lenders, or banks
• These loans vary and eligibility is determined by the individual’s creditworthiness
• Interest rates vary
• Payment period determined by individual lender; either payable immediately or payment upon graduation