Loans are another way to fund your education. There are both Federal and Private Loan options at ARCC. The main difference between Federal and Private Loans is that Federal Loans are government-run programs whereas Private Loans are bank-run programs.
Federal Loans have finite limits. This means that there is a cap on the amount you are allowed to borrow both annually and for your lifetime. Once you have reached these limits you will no longer be eligible to receive Federal Loans.
If you are financing your education and/or supplementing your living expenses using loans, PLEASE REMEMBER TO BORROW RESPONSIBLY.
The federal loan program requires students and parents (for dependent students) to apply for financial aid with the FAFSA. Students must be enrolled at least half-time -6 credits- at the time their aid is disbursed to qualify for federal loans. This is a federal regulation: there are no exceptions to this rule.
There are four types of federal loans:
What is the difference between these two programs?
No interest is charged on a while you are in school at least half time and during the six month grace period after you cease half time enrollment.
- Unsubsidized Direct Loan:
You may either pay the interest while you are in school or you may choose to have it capitalize. If you choose to have the interest capitalize you are adding the interest charges accruing on your loan to the principal balance. This results in higher interest charges every month. It is in your financial best interest to make interest payments on your Unsubsidized Direct Loan.
- Terms that apply to BOTH Direct Loan programs:
For undergraduate students, the Subsidized Direct Loan interest rate for the 2013-2014 academic year is fixed at 3.86% and the Unsubsidized Direct Loan interest rate is fixed at 3.86%. A processing fee of 1.051% is applied to each program.
Each of these loan programs have a six-month grace period after dropping below 6 credits (half-time). Please consider this when withdrawing from courses: if you withdraw and are enrolled in less than six credits your grace period will start. You only get one grace period, so if you use it prior to graduation you will be required to start repaying your loans immediately after completing your program.
Note: A "fixed" interest rate means that the interest rate will not change on your loan for the duration of your education and repayment.
Have you applied for Federal Student Financial Aid through the FAFSA (Free Application for Federal Student Aid)?
You may be eligible for Federal Financial Aid including grants, work study and loans that may have more favorable terms than the private education loan options. Learn more about the Federal Student Aid process at Apply for Financial Aid.
Anoka Ramsey does not endorse any particular lender, but does feel that the options listed will provide fair terms and conditions to our student borrowers.
This list is provided as a courtesy to our students, and you are not required to use any of these lenders. Please review the details carefully.
Click Here for more information on Private Lenders