Types of Traditional Financial Aid:
The federal government offers numerous student loan programs. Remember that an educational loan is just like a bank loan. You must pay the money back, plus interest, according to a specific schedule.
Failure to pay the loan back, can hurt your credit record for years to come…and it can also make you ineligible for additional federal funds if you decide to return to school. So, when applying for loans, apply only for the amount you really need to help meet your education costs.
- Perkins Loan: Maximum $5,500 loan per year for undergraduates, up to $8,000 for certain graduate students; 5% interest rate. The aggregate limit is $27,500 for undergraduates and $60,000 for graduate students.
- Direct Stafford Loan: Maximum $9,500 loan for first-year undergraduates attending school at least half time. If you can demonstrate financial need, up to $3,500 of this amount may be subsidized. A subsidized loan is one in which the interest is paid by the U.S. Department of Education while you are in school.
Go to Resources for financial aid, scholarships, and other educational financing information.
Read more about: Other Financial Aid Resources
Read more about: Grants, Scholarships, Work-Study