A student loan functions like most other types of loans: it is borrowed money that must be repaid with interest. If you are offered a student loan as a part of your financial aid award, it is important to consider the potential impacts borrowing money may have on your finances before you accept the loan. There are a few different types of student loans to help you cover the cost of college.
Types of Loans
- Federal Direct Loan Program – is a low-interest loan offered by the Department of Education to eligible students.
- Direct Parent PLUS Loan – is a loan offered by the Department of Education to parents of dependent undergraduate students.
- Private/Alternative Loan – is an educational loan offered through a variety of lending institutions but is not a federal loan. These should generally only be considered if you received the maximum about of Federal Direct loans.
To qualify for loans, you must complete the Free Application of Federal Student Aid (FAFSA). In addition to the basic financial aid eligibility requirements and the eligibility requirements for specific loan programs, you must also meet the following criteria to be eligible for student loans.
- Be enrolled at least half time Enrollment Status (6 credits).
- Have remaining eligibility in your Cost of Attendance. The total of aid from all sources cannot exceed your Cost of Attendance.
Visit the Disbursement webpage for additional information on when you will receive your funds.
Questions? Visit askMadisonCollege to view frequently asked Financial Aid questions, submit a Financial Aid Category question, access the Financial Aid Tutorials for step-by-step instructions on related processes, or contact Madison College Financial Aid at (608) 246-6170.