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Note that details provided on this page reference loans made under the Federal Family Education Loan Program (FFELP). Effective July 1, 2010, all new federal student loans will come directly from the U.S. Department of Education (ED) under the William D. Ford Federal Direct Loan Program (Federal Direct Loans). For information regarding Federal Direct Loans, refer to ED's Direct Loan Program Web site or contact the college's financial aid office.
After all other financial aid options (e.g., scholarships and grants) have been exhausted, educational loans can provide another resource for getting financial help to pay for college. The loan programs work differently, so talk with your lender or the college about various loan options. If you borrow a Federal PLUS Loan (for parents), you will be responsible for payment of both principal and interest from the day funds are disbursed. The first payment is due within 60 days after the date of the last loan disbursement.
If student loans are taken out in the student's name, your student will have to start repaying them soon after graduating college. Generally, your student will be given choices of repayment plans.
Because all loans must be paid back, along with interest, you and your student should only borrow the amounts you absolutely need. To help determine how much after-college income should be taken up by educational loan payments, use the SLOPE Calculator.
Click here for information on educational loans a student may borrow.
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