By Marc Coburn
From the desk of Senior Head Recruiting Coach Andrea Emmons
After last months Track & Field article titled “College Tuition”, NCSA received a lot of feedback and questions regarding the different types of Federal Loans. For the entire March article “College Tuition” please refer to the Track & Field Archives within your “new” NCSA Toolbox.
There are three basic types of student loans; the Stafford Loan, the Perkins Loan and the PLUS Loan. All three can be extremely beneficial and most college students, regardless of whether or not they are an athlete, have to use at least one during their college career. However, it is very important to understand the facts of each loan so you can choose the best option for you and your family. For more information on Federal Student Loans, visit http://www.staffordloan.com/, http://studentaid.ed.gov, or http://www.ed.gov/offices/OSFAP/DirectLoan/index.html.
The Stafford Loan
The Stafford Loan requires no collateral, has a low interest rate, and must be repaid beginning six months after graduation for students attending college at least “half time.” (This meaning you have to take at least six credit hours a semester.)
The minimum you may borrow fluctuates annually and escalates from your freshman to your senior year. In many cases, the Stafford Loan can be subsidized based on financial need, meaning that interest will not start accumulating until six months after you graduate.
Stafford Loans are designed for students who cannot cover all of their expenses during college and will likely gain employment upon graduation.
The Perkins Loan
The Perkins Loan is based entirely on financial need. There are maximum amounts a student can borrow for undergraduate and for graduate school. These loans have low interest rates and do not require repayment until nine months after graduation.
The Plus Loan
The PLUS Loan (Parent Loan for Undergraduate Students) is offered to parents of dependent students who require financial assistance. The interest rate is low and repayment begins 60 days after the final loan payment.
Sources: http://www.staffordloan.com/, http://studentaid.ed.gov
http://www.ed.gov/offices/OSFAP/DirectLoan/index.html
