Let’s make this simple.
UHEAA is committed to helping students succeed. We understand the pressures of paying for college and your needs while you’re in school. Student loans shouldn’t be your first choice to pay for college and you may be better off if you don’t end up using student loans at all. Here are a few tips about paying for college and the role of student loans.
We recommend that you search and apply for as many scholarships as possible and utilize all the federal student aid options available (federal grants, work-study, and student loans) before considering borrowing private education loans. Apply for federal student aid by submitting the Free Application for Federal Student Aid (FAFSA).
If you do decide to borrow money to pay for your education, we recommend that you look at federal student loans first, then if you still have financial need find out more about private student loans. Make sure you have a plan to repay your student loans, including a plan for dealing with financial difficulties. Always contact your lender or loan servicer if you are having trouble repaying your loans.
Find out more about the starting wages of people in your major. This is important for you to know what you can afford to borrow. Your college or university should have this information. A general rule of thumb is that your student loan payments should be less than 10% of your take home pay.
Federal Student Loans:
Loans funded by the federal government.
Programs: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans (for graduate and professional students or parents), and Federal Perkins Loans.
Private Student Loans:
Loans made by a lender such as a bank, credit union, state agency, or a school.
Programs: There isn’t a standard – private loans differ by type and lender.