A quick education on federal loans.
Through the Federal Direct Student Loan Program (FDSLP), both students and parents can apply for special low-rate loans. These loans include:
- PLUS Loans: With these low-rate federal loans parents and graduate students can borrow up to the cost of education, minus financial aid. Financial need isn't an issue, but credit guidelines apply in determining eligibility.
- Stafford Loans: Your dependent student might qualify for a Subsidized Stafford Loan, where the government pays the loan's interest while he or she is in school. Or, they can get an Unsubsidized Stafford Loan no matter what your family's financial need or income level. Unsubsidized Stafford Loans provide the option of deferring interest payments.
If you're interested in federal loans, contact the U.S. Department of Education Direct Loan Program.
And remember, if you're concerned that the amount you get from federal loans isn't enough to cover all your tuition needs, you can always bridge the gap with a Custom Choice Loan from SunTrust. Or, explore other ways to finance higher education.