Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 3422 Thereare Direct Subsidized LoansandDirectUnsubsidized Loans. DirectSub- sidized Loans are for students who have financial need; Direct Unsubsidized Loans are available for students without financial need. A Direct Subsidized Loan is preferable. The interest rate is lower and the government pays the interest on the loan while the student is in college. While the US government is the lender for all Direct and PLUS Loans, the funds are provided by the college. Federal Perkins Loan An undergraduate student with exceptional need may be awarded a Federal Perkins Loan for up to $5,500 a year. The federal government gives the money for these low-interest loans to the colleges, and the colleges disperse the funds to the students who qualify. Federal Perkins Loans have a 5% fixed interest rate, and repayment begins nine months after the student is out of college. Students apply for a Federal Perkins Loan by completing a FAFSA. PLUS Loan (Parent Loan for Undergraduate Students) PLUS Loans are available to parents with good credit. Parents can apply for a PLUS Loan for the total cost of attendance, minus any financial aid the student has received. The college’s financial aid office can provide instructions on applying for a PLUS Loan. Private Loans Many banks and lending institutions offer supplemental educational loans to credit-worthy families. Because these loans are privately funded, the fees and interest rates are likely to be much higher. Many of these loans promise low introductory rates, but the rates may change. Families should exhaust their federal loan options before considering a private loan.