Loans

Long-term, deferred payment student loans are available to qualified students through agreements with banks, credit unions, and other lenders.  Loans, unlike grants or work-study, are borrowed money that must be repaid, with interest.  Student loans are a serious obligation.  It is important to keep track of the amount of money you borrow and remember that your repayment amount will depend on the size of your debt and the length of your repayment period.  For more information, visit www.studentaid.ed.gov/pubs.

Federal Stafford (Subsidized) Student Loans

Subsidized loans are based on financial need.  The principle is deferred until six months after your last day of attendance at a half-time level.  The federal government pays the interest on the loan while you are in school at least half-time, during your six months grace period, and during authorized periods of deferment. 

Federal Stafford (Unsubsidized) Student Loans

This loan is a non-need based loan.  While the principle is deferred until six months after your last day of attendance at a half-time level, you are responsible for the interest that accrues from date of first disbursement forward.  Interest can either be paid while you are in school, or it can be postponed until you enter repayment.  If you postpone paying interest, once you enter repayment it will be capitalized (added to principal) thereby increasing the outstanding balance on which interest accrues daily.

PLUS Loans

Parents can take out PLUS loans for their dependent undergraduate children.  These loans are based on a credit check. The amount that can be received is based on the budget of the school minus any other financial aid the student is receiving.

Service Cancelable Student Loans

Legal residents of Georgia who are majoring in certain health career fields may be eligible for Service Cancelable Student Loans.  Borrowers receiving degrees in health career fields approved by the State Scholarship Commission may elect to cancel all or a portion of their loan by practicing in Commission-approved locations within the State of Georgia.  Graduates may cancel an academic year's loan or its equivalent by practicing in an approved field for one calendar year.  Repayment policies regarding loan cancellations are subject to change at the discretion of the State Scholarship Commission.