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Loans

Before you Borrow

Choosing to borrow an educational loan is a decision that you should consider seriously before entering into a loan agreement. Loans can be a wonderful way to make attending college possible, but many students enter into loan agreements without fully understanding the consequences of their decisions.

First, is this the best loan for me?

Federal loans, including Stafford loans, Perkins loans, and PLUS loans, are generally the best options and should be your first consideration. The maximum interest rates and fees on these loans are set by federal law, so the terms and conditions for these loans are clearly defined and will not change over time.

Private loans, also known as alternative loans, offer another type of loan. Sometimes students choose to borrow private loans because they believe it's a simpler option. You don't have to fill out a FAFSA in order to borrow, the funds are sometimes sent directly to you, and our office may not even have to certify the loan. But you will pay a price for that convenience in the form of very high interest rates and high loan fees. Often, students commit to these loans without even knowing the interest rates or repayment terms. Before you apply for a loan that you don't fully understand, contact our staff to see if there might be better options for you.

How much should I borrow?

You should never borrow more than you absolutely need to attend school.  Loans must be repaid when you're no longer enrolled in school, and you need to be very honest about your ability to repay student loan debt based on what you anticipate your future annual income will be. Check out the “Loan Payment Calculator” available on FinAid.org to see what your monthly payments might be at various borrowing levels.

While the Office of Scholarships and Financial Aid cannot certify a loan that exceeds the estimated cost of attendance figures, many students find they can live even less expensively than that. Look carefully at your spending habits to see if there are things you can do to save money.  Are you really using all of the meals you’ve purchased with your meal plan? Are you looking for ways to save on books and supplies? If you're living off-campus, are there less expensive housing options that you could consider? Are you taking advantage of the free & inexpensive weekend activities you can do on campus? Borrow only if you truly need the funds.