Loans are considered self-help financial aid because they must be repaid. While you don’t need to be intimidated by student loans, you do need to understand how they work and be wise when accepting a loan. There are five types of federal loans (listed below) in addition to loans through other providers. You will not qualify for all federal loans.
- Subsidized and Unsubsidized Stafford Loans
- Perkins Loans
- Parent Loan for Undergraduate Student (PLUS)
- Graduate PLUS Loan
- Health Professions Loans
Health profession loans include several low-interest loans provided by the U.S. Department of Health and Human Services for students enrolled in medical and nursing programs. These include:
- Health Professions Student Loans
- Nursing Student Loans
- Primary Care Loans
If you are pursuing a health care degree, check with the financial aid office at your college or go to their Website to find out if they offer these loans and to understand the application process. Even if you are an independent student, you may have to provide financial information about your parents if you borrow using a health professions loan.
Important things to remember about loans:
- You must complete and file the Free Application for Federal Student Aid (FAFSA) to determine which federal loans you are eligible to receive;
- You are eligible for federal student loans as long as you are enrolled in college at least half-time each semester;
- You are never required to accept a loan (or the entire amount of a loan) that is offered to you as part of your financial aid award;
- You must sign a "Promissory Note," which is a legal document and your promise to repay each loan you accept;
- You must complete an entrance counseling session for federal loans before you receive any loan funds. Your college will let you know how you do this;
- Fees may be taken out before the funds are disbursed to you;
- Federal student loan payments are deferred until you graduate or leave school;
- Student loans can help you establish a positive credit report (which is necessary to purchase a home or a car) as long as you pay what you owe in a timely manner.
No matter which loan(s) you decide to accept, be a wise borrower and only borrow what you need to pay for your educational expenses each year. The SLOPE Calculator and the Loan Repayment Guide can help you determine this amount.