An educational loan will help open the door to a student’s future. Making informed, well thought-out decisions regarding finances while in college is one important key to ensuring that this and many other doors remain open.
Loans are a form of financial aid that must be repaid with interest. Loans provide monetary assistance through the federal government and other organizations. Loan funds are to be used for educational purposes and must be repaid.
The main purpose of this section is to provide you with a quick summary of the different types of loans available to students and parents. At the current time, all new federal student loans are administered and funded by the U.S. Department of Education (ED) through the William D. Ford Federal Direct Loan Program (Federal Direct Loans). Prior to July 1, 2010, federal student loans were also available through the Federal Family Education Loan Program (FFELP). FFELP was administered by guaranty agencies (e.g., ISAC) and the federal government, with private lending institutions funding the loans. Borrowers may access information about Federal Direct Loans by visiting the Loans page of ED's Federal Student Aid website, or by contacting the college’s financial aid office.