Frequently Asked Questions
What is a college loan?
A college loan is a loan used to pay for tuition, fees, and general living expenses while a student is enrolled in a postsecondary school educational program.
What is the difference between federal and private loans?
Loans from the government generally offer lower interest rates and more protections for the borrower. Private loans come from for-profit banks and financial institutions.
Should I submit a completed FAFSA before applying for loans?
Yes, because your FAFSA profile helps to determine your eligibility for many kinds of loans (and other financial aid awards).
What is a subsidized loan?
A subsidized loan requires demonstrable need as determined by the FAFSA. Borrowers judged to have that need qualify to receive financial help from the government.
What is an unsubsidized loan?
An unsubsidized loan is available regardless of financial need, but interest accumulates while the student is in school and during repayment.
Do student loans have interest?
Yes. Interest rates vary by loan type and year. Federal loan rates are fixed for the life of each loan.