Federal and Private Loans

Student Loans
Student loans can help cover educational expenses that are not met by scholarships, grants, and other financial aid. GSW participates in the federal Direct Loan Program and offers Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Parent PLUS Loans. Students may also consider private education loans from private lenders. Federal and private loans have different eligibility requirements, interest rates, fees, and repayment terms. Students should carefully consider the amount they need to borrow and understand their repayment responsibilities before accepting a loan.

Direct Subsidized Loans
Direct Subsidized Loans are federal student loans available to eligible undergraduate students who demonstrate financial need. The federal government pays the interest on a subsidized loan while you are enrolled at least half-time, during the six-month grace period after you leave school or drop below half-time enrollment, and during certain periods of deferment. Students must complete the required federal loan application and eligibility requirements to receive a Direct Subsidized Loan.

Direct Unsubsidized Loans
Direct Unsubsidized Loans are federal student loans available to eligible undergraduate and graduate students. Financial need is not required. Interest begins accruing when the loan is disbursed, and students are responsible for the interest that accrues during all periods of the loan. Students may choose to pay the interest while enrolled or allow it to accrue and be added to the loan balance.

Direct Parent PLUS Loans
Direct Parent PLUS Loans are federal loans available to parents of dependent undergraduate students to help pay for educational expenses. The parent borrower must meet federal eligibility requirements, including a credit check. The maximum amount a parent may borrow is generally the student's cost of attendance minus other financial assistance received. Parent PLUS Loans are the responsibility of the parent borrower and are not transferred to the student.

Private Education Loans
Private education loans are offered by private lenders to help students and families pay for educational expenses. These loans are not part of the federal student aid programs and may have different interest rates, fees, repayment terms, and eligibility requirements than federal student loans. GSW recommends that students consider their federal student loan eligibility before pursuing a private education loan and carefully compare terms from different lenders.

Private loans:

• Typically have higher interest rates
• Have fewer repayment options
• Require a credit check

Click here to learn how to accept your student loans.

Helpful FATV Videos

What is a private loan?

https://gsw.financialaidtv.com/play/1498-private-loans/1472-what-private-loan

Differences Between Private and Federal Student Loans

https://gsw.financialaidtv.com/play/1498-private-loans/1473-differences-between-private-and-federal-student-loans

Borrowing Student Loans

A Minute to Learn It - Borrowing Student Loans | Georgia Southwestern State University | Ocelot