Loans can be an important part of a student's paying-for-college strategy. Georgia State offers educational loans from a variety of sources, including federal, state, private, commercial and institutional. We understand that borrowing for one's education is an important investment in the future. We encourage our families to borrow wisely and to work with our financial aid counselors to ensure no more debt than is necessary and manageable is taken.
The Federal Stafford loan is the most common student loan program for funding undergraduate and graduate education.
Subsidized loans are based on financial need as determined by the Expected Family Contribution on the FAFSA. The federal government pays the interest on the Subsidized Loan amount borrowed while the student remain in school at least half-time.
Important Note: The U. S. Department of Education has temporarily eliminate the interest subsidy on Direct Subsidized Loans during the six month grace period provided to students no longer enrolled on at least a half-time basis. This change will be effective for new Direct Loans disbursed on or after July 1, 2012 and before July 1, 2014.
Unsubsidized loans are not based on financial need, therefore the federal government does not pay the interest during in-school, grace, and deferment periods. Students may choose to defer interest payments until repayment begins; however, the student is responsible for all interest that has accrued, which will automatically capitalize to the loan principal.
A Federal Perkins Loan is a low-interest loan for students who demonstrate the greatest financial need.
Federal Perkins Student Loan borrowers who are leaving school, dropping below half-time enrollment, or graduating must complete exit counseling at http://www.gsu.edu/studentaccounts/. Students should select the Perkins Exit Counseling link. Perkins Exit counseling provides you with information about repayment and your rights and responsibilities.
A Federal PLUS is a loan in the parent’s name for a dependent student enrolled at least half time in a degree-seeking program. It is a non-need based loan with the benefit of having a fixed interest rate. PLUS Loans are available regardless of income or assets, and no collateral is required. While the parent borrower does not have to prove financial need, a credit check is required.
The Office of Student Financial Aid has established the following Plus Loan priority deadlines for applications:
FALL SEMESTER: August 3
SPRING SEMESTER: December 7
For additional detailed information please go to http://studentaid.ed.gov/PORTALSWebApp/students/english/parentloans.jsp
Grad Plus Loan
A Federal Graduate PLUS is a loan in a graduate or professional student’s name enrolled at least half time in a degree seeking program. The Graduate PLUS Loan carries the same terms and conditions as the Parent PLUS Loan. The borrower should apply for the Subsidized and Unsubsidized Stafford Loan before applying for a Graduate PLUS loan. A credit check is required.
For additional detailed information please go to http://studentaid.ed.gov/PORTALSWebApp/students/english/PlusLoansGradProfstudents.jsp
Students who need additional funds beyond what they qualify for in federal student aid (including Federal Direct Loans) or students who are not eligible for Federal Direct Loans may wish to apply for a private (alternative) education loan. Note: A Free Application for Federal Student Aid (FAFSA) is not required to apply for a private (alternative) education loan.
A private (alternative) education loan is a non-federal education loan, through a private lender typically issued in the student’s name and requiring a cosigner. The availability of these loans is declining and most lenders who still provide these loans are increasing their interest rates.
Each lender has different eligibility requirements, interest rates, repayment terms and conditions. For example, some lenders require students to be enrolled at least half-time in a degree-granting program, while others will lend to students who are non-degree seeking or are enrolled less than half-time.
Students and/or parents who find they must apply for a private education loan may contact their bank, credit union or other private lending institution to ascertain if they provide private (alternative) education loans. Students may also do an internet search for “private student loans”. We strongly recommend you compare interest rates, loan fees and repayment plans before applying for any loan.
This is a list of lenders used by Georgia State University students in the past.
Federal Direct Loan borrowers who are leaving school, dropping below half-time enrollment, or graduating must complete exit counseling at http://studentloans.gov/. Exit counseling provides you with important information about repayment and your rights and responsibilities.