Welcome to the “Educational Loans” section of our
Website, and join us for an overview of one topic that most college
students have to consider while financing their education. An
educational loan is one of the most valuable resources for students
and parents, and it has been since it was first introduced into
federal legislation to the Congress of the United States in the
late 1950’s, in response to the launch of “Sputnick.”
Educational loans were developed specifically for college students
and parents and are repayable at competitively low interest rates. They
are simple to apply for (via the FAFSA), are readily available,
and generally offer a variety of repayment options. The
majority of loans that are based on financial need, the subsidized
ones, require no repayment of principle or payment of interest
while the student is in school, as long as he/she is attending
at least half-time (generally six credits per term). Unsubsidized
loans require quarterly interest payments (not principle) while
the student is in attendance. The principle on both a type
of loans become repayable after a grace period, generally after
the student graduates or enrolls for less than six credits per
term.
For college students and parents, the two largest educational
loan programs are the William D. Ford Federal Direct Student Loan
Program, and the Federal Family Educational Loan Program (FFELP). Long
Island University offers loans through the Federal Direct Student
Loan Program, and also offers loans through the Federal Perkins
Student Loan and for pharmacy majors, the Health Professions Student
Loan Programs. The federal government guarantees all of these
loans, and most are based on demonstrated financial need.
To help our students and parents become informed borrowers, we
offer the following information on the educational programs. We
have provided information that we hope will explain loan borrowing
from the application process through the repayment process, and
hope that we can help families make the best loan choices for their
student. This and additional information is also available in our
publication “Financial Aid Guide” which is sent to
all students with their award notices each year.
You may download the Entire Educational
Loans Guide - pdf
version
QUESTIONS?
You may download the Entire Educational
Loans Guide - pdf
version |
