1201 S. State Street,
Big Rapids, MI 49307
Benefits of Federal Student Loans
- Federal Loans have a pre-determined, fixed interest rate which is often lower than those offered through private loans.
- The interest on Direct Subsidized federal loans and federal Perkins Loans is paid by the government as long as the student is enrolled at least half-time, as well as through the grace period.
- Federal loans are offered each year a student files a FAFSA, provided they meet general eligibility requirements.
- Once a student graduates, they have the option to consolidate federal loans for a lower payment.
- Federal loans have many repayment options that may be beneficial to students as they enter repayment or if they experience financial hardships during periods of repayment.
- Some students may qualify for loan forgiveness programs.
- For more information and answers to frequently asked questions, visit the Federal Student Aid website.
Considerations When Applying for a Private Loan
- Does the lender offer fixed and/or variable interest rates?
- Are loan processing and/or origination fees charged?
- What are the loan repayment options?
- When does repayment begin?
- Can the loan co-signer be released during repayment?
- Have you taken advantage of federal loan options?
- Have you explored and exhausted other means of educational funding?
- If you have difficulty making payments, what options do you have?
- Are there pre-payment penalties?
- Are there deferment or forbearance options available?