Virtually Everyone Qualifies for Student Loans

Almost everyone qualifies for a federal student loan. We automatically consider you for federal loans when you submit your Free Application for Federal Student Aid. To receive a federal loan, you must take at least six credits each semester, meet a few eligibility requirements, and make Satisfactory Academic Progress.

Federal loans have advantages over other types of student loans:

• They offer fixed interest rates and fees that usually are the lowest available.
• Their repayment terms are typically the most flexible.
• You can combine all of your federal loans in a Direct Consolidation Loan.
• You may qualify for various federal loan forgiveness programs like those for teachers and employees of government agencies and nonprofit organizations.

The federal government offers four types of loans:

1. Direct Subsidized Loans are for students who demonstrate financial need on their FAFSA. The government pays the interest while you’re in school at least half-time and for six months after you leave.
2. Direct Unsubsidized Loans don’t require financial need. You pay all of the interest.
3. Direct PLUS Loans are available to parents to help pay their child’s education expenses. A credit check is required, but financial need is not.
4. Direct Consolidation Loans let borrowers combine their loans into a single loan.

With the federal Loan Simulator, you can calculate your payments under various repayment options.

Many banks, credit unions, and other financial institutions offer private student loans. The interest rates are usually higher and the repayment terms less flexible than with government loans.

Private loans require credit checks. Since many students have limited credit histories, most need a co-signer.

ELMSelect is a tool that helps with the private loan search across several lenders.