Students and families have the opportunity to manage educational costs through borrowing. Federal student loans are typically the best option, offering low interest rates and postponement of repayment until graduation. Eligibility for federal loans is contingent upon meeting GPA, satisfactory academic progress and enrollment requirements (six hours undergraduate, four hours graduate).
The Parent PLUS Loan is another federal loan option that offers reasonable rates and attractive repayment terms. This loan is available to the parents of undergraduate dependent students and is subject to application and credit approval.
Private loans typically accrue interest immediately and offer rates based on credit approval. Unlike federal loans, most undergraduate private loan borrowers will need a cosigner. Overall, federal loan programs are less expensive than private loans and should be considered first when developing your cost management plan.