Learn About the Different Types of Federal Student Loans
Federal student loans are available to FAFSA eligible students to help cover the direct costs of tuition or the indirect costs of eligible living expenses included in the cost of attendance. Students must be currently enrolled at least half time and making satisfactory academic progress to be eligible for any of the federal student loan programs.
Federal Direct Subsidized & Unsubsidized Stafford Loans
Subsidized: A moderately low interest, need based loan only available to eligible undergraduate and graduate students. The U.S. Department of Education pays the interest on this loan during in school deferment and during the grace period. Repayment begins six months after recipients are no longer enrolled at least half time. Maximum timeframe limit for the interest subsidy applies to all first time borrowers after July 1, 2013.
Unsubsidized: moderately low interest loan available to eligible undergraduate, and graduate students enrolled at least half time. Unlike the Subsidized Stafford loan, interest does accrue on this loan while the student attends school, during the grace period and while in repayment.
Federal Direct Parent PLUS Loan
The Parent Loan for Undergraduate Students (PLUS) is a federal loan for parents to borrow on behalf of their dependent students. The parent PLUS loan has a fixed interest rate. For parents to be eligible to borrow this loan, students are required to complete a FAFSA and be enrolled at least halftime (6+ credit hours). Parents must be a U.S. citizen or an eligible non-citizen and pass a credit check.
The Parent PLUS loan is a credit-based loan for which parents may apply as the borrower to help pay account balances. All students must have a FAFSA on file. The PLUS Loan parent borrower is responsible for the repayment of the loan obligation. If you would like to apply for a Parent PLUS Loan, please visit Parent PLUS Loan Application using your parent FSA (Federal Student Aid) identification login credentials.
Another popular payment option is a Private Student Loan in which the student is the borrower of the loan. A creditworthy cosigner will not only improve the chances of approval but may also help secure a lower interest rate, reducing the overall cost that will need to be repaid. Adams State University utilizes a service called ELMSelect to present a historical list of private lenders Adams State students have used in the past three years. Please visit the Adams financial aid private loans web page for more information and considerations in selecting a private loan provider.
Accept Parent PLUS Loan
Before a parent can accept the Parent PLUS loan the following requirements must be completed on studentaid.gov. The parent MUST login with their FSA ID and password, NOT the student’s information.
- Complete PLUS loan credit check
- Complete Master Promissory Note (Loan Agreement)
Once these requirements are complete the parent must send an email to loans@adams.edu including the following information:
- Parent’s name
- Student’s name
- Student’s student ID number (900#)
- Amount of loan requested for academic year (fall and spring)
Optional: Any additional information the parent would like to share with the loan processor.
An example would read:
“My name is Jane Doe and I am the parent of Junior Doe, ID number 900123456 and I would like to accept the Parent PLUS loan in the amount of $4,000.”
Federal Graduate PLUS
Most graduate students at Adams State are eligible for unsubsidized loans to help cover their cost of attendance, however some students may also be eligible for the Graduate PLUS loan. If the student’s budget allows they can receive this loan in addition to their unsubsidized loan or in the place of an unsubsidized loan.
Receive a Federal Student Loan
To receive a federal student loan, you must accept your loan amount through your Adams State student account and complete entrance counseling and a master promissory note.
