Should You Consider Student Loans?

Like with grants and scholarships, student loans can be a great option to help pay for school and there are many designated specifically for adult learners like you who are returning to school.

The primary difference is that, unlike grants and scholarships, you’ll ultimately have to pay back the student loans.

However, that doesn’t mean that student loans aren’t a viable option for you. In fact, federal student loans are super affordable and flexible to help you go back to school without worrying about the financial burden.

The benefits of federal student loans include:

  • They have low interest and a fixed interest rate
  • You don't need a cosigner
  • If you demonstrate financial need, the government pays the interest on some loan types while you are in school and during some periods after school
  • Federal student loans offer flexible repayment plans and options to postpone your loan payments if you're having trouble making payments
  • If you work in certain jobs, you may be eligible to have a portion of your federal student loans forgiven if you meet certain conditions

There are four types of student loans: Direct Subsidized, Direct Unsubsidized, Direct PLUS, and Direct Consolidation.

For undergraduate students, the maximum amount that you can borrow each year ranges from $5,500 to $12,500 per year, depending on what year you are in school and your dependency status.

But remember, you can borrow less than your school offers and can request more loan funds later if you need to. You should borrow only what you need.

 

How to Apply for a Federal Student Loan

To apply for a federal student loan, you must first submit a FAFSA form. After that, your institution will send you a financial aid offer, which may include federal student loans. Your school will tell you how to accept all or part of the loan.

Before you receive your funds, you will be required to:

  • Complete entrance counseling to ensure you understand your obligation to repay the loan
  • Sign a Master Promissory Note, agreeing to the terms of the loan

If you have questions about student loans or paying for your degree completion program, we invite you to connect with the Director of the Adult Degree Completion Program here at Southern to discuss your options and make a plan to finance your education.

Next Chapter