Student Loans

The William D. Ford Federal Direct Loan Program is a federal student loan program offered by the U.S. Department of Education. The Federal Direct Loan Program is available to eligible postsecondary students and their parents. Direct subsidized loans, direct unsubsidized loans, direct PLUS loans, and direct consolidation loans are all available through this program.

The Free Application for Federal Student Aid (FAFSA) is an official form that must be filled out in order to receive financial aid from the federal government. To complete the FAFSA, you must provide information about yourself and your financial situation. The FAFSA is available starting Oct. 1 of the year prior to enrollment, and the federal due date is June 30 of the academic year (some colleges and/or states have their own deadlines).

A FAFSA award letter is provided by the colleges that are listed on your FAFSA form and details the cost of attendance for an academic year and your eligibility for any grants, loans, etc. Most colleges send out award letters alongside their admission offer letters. Although colleges have access to your FAFSA information a day after it’s processed, the timeframes for reviewing your FAFSA information may vary from one university to another.

A deferment period is an amount of time where a borrower isn't required to repay their loan's principal or interest. Deferment periods vary based on the type of loan; student loans can only be deferred for up to three years. Depending on the type of student loan, you may still have to pay down the interest that accrues during the deferment period.

A PLUS loan is offered to graduate & professional students and the parents of dependent undergraduates. While eligibility isn’t based on financial need, a credit check is required, and borrowers with an adverse credit history won’t be eligible without meeting other criteria. The max amount available to you will be based on your chosen college's cost of attendance minus any financial aid you’ve received.

A direct consolidation loan allows you to combine all of your eligible federal student loans into just one loan with a sole loan servicer. Your consolidated loan will have a fixed interest rate based on the average of the original loans’ interest rates. Consolidating multiple loans can be accomplished at no cost to you and allows you to reduce your number of monthly payments.

A student loan interest deduction allows you to deduct up to $2,500 of the interest paid on qualified student loans during the tax year. The deduction is only available if you meet certain eligibility criteria, and it’s gradually reduced as your modified adjusted gross income (MAGI) reaches its annual limit. This interest deduction is claimed as an adjustment to income, so it don't need to itemized on your income tax returns.