When planning on how to pay for college, most students and their families think about scholarships and grants. Loans are seldom anyone’s first choice in funding an education. Given the fiscal realities of the time, loans will remain the largest category of funding for a college education. We highly suggest that you research your cost and loan options very carefully before determining how much you need to borrow.
Lawrence Tech participates in the Federal Direct Student Loan Program for student borrowers to assure the availability of student loan funding. If you have any questions contact the One Stop Center.
Either you or your parents can borrow an education loan, but there are different programs for students and parents. There are two kinds of education loans: loans based on financial need and loans that are not. Need based loans are more desirable because they have lower interest rates and the interest is subsidized (paid by the federal government) while you are enrolled at least 1/2 time.An education loan is a form of financial aid that must be repaid, with interest. Education loans come in three major categories: student loans (e.g., Stafford and Perkins loans), parent loans (e.g., Stafford and Perkins loans), parent loans (e.g., PLUS loans) and alternative student loans (also called private student loans).
Student Loans Based on Need
You have to apply for financial aid and meet the financial need guidelines to receive one of these loans.
Student Loans Not Based on Need
You have to apply for financial aid, but there are no financial need guidelines to qualify.
A parent loan offers a way for a family to spread education expenses over time so the amount paid each month is more manageable. Parents are eligible to borrow up to the price of education minus any student financial aid, including student loans.
Alternative Loans (also called Private Loans)
There are times when Federal Aid is not enough to cover the cost of tuition, housing, books and other essentials to complete your education. In those cases, alternative borrowing could fill the need.
Lawrence Tech has a guide to alternative loans here: Alternative Loans