Aid Step 5: Financial Aid Options

— Federal Student Loans —

Perkins Loans:

low-interest (5% percent) federal loans awarded to undergraduate and graduate students with exceptional financial need.

You can borrow up to $4,000 for each year of undergraduate study; $6,000 for each year of graduate or professional study.

The total amount you can borrow as an undergraduate is $20,000 after you complete two years of undergraduate study; $40,000 for graduate and professional.

The loan does not charge origination fees. Your school becomes the lender using funds shared by the federal government. You must repay this loan to your school.

For more information:
www.ed.gov/prog_info/.../perkins.html

FFELP (Federal Family Education Loan Program):

the most common form of self-help aid. These are loans made to students (Stafford loans) and parents and graduates (PLUS loans) from banks, credit unions and other lenders that participate in the FFELP program.

These loans are insured by the federal government that allow lenders to lend money at lower-than-normal rates. Most schools participate in FFELP.

More information available:
Stafford Student Loans | Grad PLUS Loans | Parent PLUS

FDSLP (Federal Direct Student Loan Program):

exactly like the FFELP program above, except the loans are funded through the schools by the federal government directly (not by the banks).

Some schools participate in FDSLP. You need to check with your school's financial aid office to determine whether they participate in FDSLP or FFELP.

More information available:
Stafford Student Loans | Grad PLUS Loans | Parent PLUS

 

download the US Department of Education Student Aid Booklet for more detailed information about federal loans