OTHER FINANCIAL AID

A combination of student loans, grants and work study usually completes the student aid package.

Loan Types

Direct Subsidized Loans do not need to be repaid until you've graduated or left school. The amount you can borrow may depend on your school and your academic level.

Direct Unsubsidized Loans need to start being repaid as soon as you get the money. The amount you can borrow also depends on your school and your academic level.

DirectPLUS Loans are for professional and graduate students or the parents of dependent students.

State Financial Aid. Almost every state in the country offers some form of financial aid to resident students. Eligibility requirements vary quite a bit. The National Association of Student Financial Aid Administrators is a great resource to see what financial aid is available in your state.

College-Specific Financial Aid. Many colleges and trade schools offer their own merit-based and need-based financial aid. The funds for these are typically provided by former alumni, major corporations, or local businesses and nonprofits. Some may be geared toward underrepresented students, students who are pursuing a specific degree, or students from certain life backgrounds (such as first-generation college students, those who were in foster care or immigrants). To see what your school offers, check out its financial aid website or visit its financial aid office.

Private Loans. These loans are offered by banks, credit unions and independent lenders. The terms vary significantly depending on the lender, but borrowers may need to provide their identity, show what assets they have, demonstrate regular income, and undergo a credit check. Some lenders may allow you 10-15 years to pay off the loan. Unlike federal loans, most private loans do not offer deferments or loan forgiveness, and they almost always come with higher interest rates and less-favorable terms. For this reason, you should exhaust all other financial aid and scholarship opportunities before turning to a private lender.

Work-study programs hook students up with part-time jobs to help pay for school. These jobs are often oncampus and may even be offered in the student's field of study, giving them valuable hands-on experience.

IS LOAN FORGIVENESS ON THE WAY?

As of press time, President Joe Biden's executive order to forgive student loans of $10,000 if you did not receive a federal Pell Grant and $20,000 if you received a Pell Grant*, affecting millions of payers, has been frozen by the U.S. Supreme Court, pending a hearing by Summer 2023. Meanwhile, Biden has extended the loan repayment moratorium until a court decision is rendered.

*assumes you also meet the income levels