Loans are funds that are borrowed from government entities or private institutions that must be repaid with interest. To apply for federal loans, you must complete the FAFSA. Here are the loans options available at PIMS:
- Federal Direct Subsidized and Unsubsidized Loan: The Federal Direct Student Loan Program is the most widely used student loan program for students interested in borrowing to help meet educational expenses. The Federal Direct Subsidized Student Loan does not accrue interest while you are enrolled in classes at least half-time, but the Federal Direct Unsubsidized Loan accrues interest starting at the date of disbursement. Borrowing limits, interest rates, and terms of repayment are determined and regulated by the U.S. Department of Education. Students apply for these loans via the FAFSA.
- Federal Direct Parent PLUS Loan: The Federal Parent PLUS Loan Program enables parents with good credit histories to borrow money to pay the education expenses of their children. The student must be a dependent student making Satisfactory Academic Progress and attending school at least half-time. Parents should contact the PIMS FA Office for instructions on how to apply and to inquire about loan limits.
- Private Education Loan: Students and their families can borrow additional loan funds to help meet their college costs using private education loan programs. These credit based loan programs are provided by commercial lenders and are not supported by state or federal financial aid funds. Some private education loans may require interest payments while the student is enrolled in school. In addition, students need to be aware that interest rates and repayment plans will vary with private educational loans to be aware of this information prior to applying.