Federal student loans are borrowed funds that you must repay with interest. A federal student loan allows students and their parents to borrow money to help pay for college through loan programs supported by the federal government. They have low interest rates and offer flexible repayment terms, benefits, and options. To qualify for student loans, students must be eligible to complete a FAFSA. ORSAA students are not eligible for loans.<\/p>\n\n\n\n
To get a loan, follow the steps to receiving financial aid, beginning with Step 1: Apply for financial aid<\/a>. If you are eligible for a loan, it will be listed when you review your award<\/a>.<\/p>\n\n\n\n Making early interest payments<\/a> reduces the amount you\u2019ll owe later. Consider making (small) monthly interest payments on your loans while you\u2019re in school. You\u2019ll save money a lot of money in the long run.<\/p>\n\n\n\n Loans are limited and must be repaid, so take only what you need for your education. Learn how to responsibly borrow for school in Managing Student Loans<\/a>.<\/p>\n\n\n\n The most utilized loan program is the William D. Ford Federal Direct Stafford Loan. The Direct Loan is made through the U.S. Department of Education. Direct Loans are either subsidized<\/strong> or unsubsidized<\/strong> \u2013 subsidized loans have slightly better terms to help out students with financial need. Read more at the Department of Education\u2019s loans page<\/a>.<\/p>\n\n\n\n If you are a first-time borrower, you must complete these steps before receiving your Direct Loan:<\/p>\n\n\n\n When you leave EOU or drop below half-time, you will complete these steps:<\/p>\n\n\n\n If your student needs additional funding beyond grants, scholarships, and their own student loans, you may wish to consider the Federal Parent PLUS Loan. This loan allows eligible parents of dependent undergraduate students to borrow up to the full cost of attendance (as determined by EOU), covering expenses such as tuition, fees, housing, food, books, and other education-related costs.<\/p>\n\n\n\n To be eligible, your student must be enrolled at least half-time as a dependent undergraduate, and you (the parent) must be a U.S. citizen or eligible noncitizen, not in default on federal aid, and able to pass a basic credit check (or apply with an endorser). To apply, ensure your student\u2019s FAFSA is on file, then visit studentaid.gov<\/a> to complete the Parent PLUS Loan application for the amount you wish to borrow. PLUS Loans carry a fixed interest rate set by Congress. Repayment can begin 60 days after the final disbursement or be deferred until after your student leaves school or drops below half-time; interest accrues during all periods. Repayment generally spans 10 years, with options to consolidate into income-driven plans if needed. Please note that Parent PLUS rates and fees are higher than undergraduate federal loans.<\/p>\n\n\n\n If your Parent PLUS Loan application is denied and you do not wish to use an endorser, your student may be eligible for additional Unsubsidized Stafford Loans. Please contact our office for details based on your student\u2019s year in college.<\/p>\n\n\n\n Next Steps:<\/strong><\/p>\n\n\n\n The Parent PLUS Loan is just one of several tools to help bridge the gap in funding your student\u2019s EOU education. For support at any step, please reach out to us\u2014we\u2019re here to help.<\/p>\n\n\n\n After you graduate or drop below half-time (6 credits per term), you have a grace period of 6 months. After the 6 months are up, you have to start making payments on your loans. You\u2019ll need to find out where to send payments, as well as choose a repayment plan that works for you.<\/p>\n\n\n\n Check this page for more information on Student Loan Repayment<\/a>.<\/p>\n\n\n\nWant to save some money?<\/h2>\n\n\n\n
Types of financial aid loans<\/h2>\n\n\n\n
Direct Loan<\/h2>\n\n\n\n
Steps for Direct Loan borrowers:<\/h3>\n\n\n\n
Starting School<\/h4>
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Leaving School<\/h4>
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Parent PLUS Loan<\/h2>\n\n\n\n
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About repayment<\/h2>\n\n\n\n