Student Loans
Even after exhausting free money opportunities, most students need some form of education financing to pay for college. In fact, almost two-thirds of all student aid—or almost $50 million—comes from low-cost federal student loans. These programs provide many advantages over traditional consumer loans:
Lower interest rates
Student loan rates are at their lowest in history. For example, the rate for a Federal Stafford loan is 3.42%, down from 4.06% in 2002.
Deferred interest
Interest on some student loans does not accrue until after graduation.
Flexible repayment plans
Options include deferment, forbearance, and income-sensitive repayment to reduce or postpone repayment.
Tax benefits
You may be able to deduct up to $2,500 in student loan interest—even if you don’t itemize.
Your school will outline in your Award Letter the education loan programs for which you’re eligible. These may include:
After graduation, you may also qualify for a Consolidation Loan.
Compare student loans to see which is right for you
Financial Aid Advisor
» The Inside Scoop for High School Students
» Types of Financial Aid: Know Your Options
» The Financial Aid Process
» Your First Step: Completing the FAFSA
» What you Really Need to Know about Financial Aid
» Important Dates: Your Financial Aid Calendar
» Student Loans
» Student Loan Repayment