Loans Defined: Am I Getting My Money's Worth?

Federal Stafford Loans are student loans that must be repaid and are available to both undergraduate and graduate students. There are two types: Federal Direct Loans (Direct Loan) and Federal Family Education Loans (FFEL).

• If it is a subsidized Stafford Loan (demonstrated need for the loan), you

are not responsible for interest while attending at least half-time and the principle is deferred.

• If it is an unsubsidized Stafford Loan (financial need was not demonstrated) the principle is still deferred but you are responsible for paying interest on the loan.

Federal PLUS Loans are available to parents of dependent undergraduate students who are enrolled at least half-time. The PLUS Loan is also available to graduate and professional degree students. Financial need is not a requirement.

PLUS Loans are unsubsidized: the borrower is responsible for any interest that accrues during the life of the loan. Borrowers can request a loan for up to the full cost of attendance minus any other financial aid.

With a few exceptions, Federal Pell Grants are available only to undergraduate students for a maximum lifetime limit of 18 semesters or the equivalent. Grants do not have to be repaid.

Federal Work-Study provides jobs to both undergraduate and graduate students, allowing them to earn money to pay education expenses.

For more information and further details about the various types of loans visit the FAFSA website at http://www.fafsa.ed.gov/what010.htm or pay a visit to DTI!!