Loans - What is a Loan?

Student loans, unlike grants and work-study, are borrowed money and must be repaid, with interest, just like car loans and mortgages. Loans are legal obligations, so before you take out a student loan, think about the amount you’ll have to repay over the years.

Loans are provided at low interest rates and are available to most students. You must complete the FAFSA (Free Application for Federal Student Aid) to determine which loans you qualify for. The loan programs were established and are regulated by the Federal government. Depending upon the specific loan program, repayment may begin while the student is still enrolled, or after the student leaves school or drops below half-time enrollment.