• An education shouldn't cost you 
    your future.

    Loan Programs

Federal Direct Loan Program

The William D. Ford Federal Direct Loan Program provides low-interest loans for students and parents to help pay for the costs of furthering their education. 

The lender is the U.S. Department of Education, as opposed to a bank or other financial institutions. 


There are two types of loans offered under this plan.

Subsidized

~ Secured

ED will pay the interest on student accounts when their in school status is full-time.

Unsubsidized

~ Unsecured

The student is responsible for the accruing interest at all times.

Federal Family Education Loan Program

The United States Department of Education awards contracts to private companies to manage FFEL loan. 90% of the loans are managed by four organizations:

These private companies make millions every year by capitalizing interest against students and their loans.

Life cycle of a loan

#1. You take out loans for college.

You apply for financial aid thru whichever school you intend to attend. 


#2. You're enrolled and attending classes.

Your school status is listed as full-time so you're not required to make any payments.

#3. Congratulations you've graduated!

Once you graduate your school will schedule a meeting to perform exit counseling.

This is where the student chooses a repayment plan.

#4. Time to pay back on your loans; 
in repayment. 

You will make monthly payments back on your loans until the balance is paid back in full w/interest. 

How they make an impact on your loan balance.

Interest is money an individual pays for the use of borrowed funds. Interest that accumulates is based on the loan's unpaid principal balance and accrues on a student loan every single day, 
​even if the account is not in repayment.

Interest accrues every day from the date of disbursement; however, depending on your loan type or repayment plan, such as Income-Driven Repayment plans, you may not be liable to pay on the interest. 

Subsidized

The Department of Education will pay the accrued interest on your subsidized loans when:

*Your enrollment status is Full-time.
* On approved deferment.
*Under grace if loans were before.
July 1, 2012.

Unsubsidized

The borrower is responsible to pay back on the interest accrued over the life of the loan.