|
Go to top
What loans are available?
Some state agencies offer educational loans that offer very similar benefits to the federal programs. In addition, many non-profit and private for profit companies such as banks, offer private educational loans, commonly called "private loans". These loans are commonly offered in combination with the federal programs.
There are other loans that can be used for educational purposes. For example, funds borrowed against the cash value of a life insurance policy, your family's home equity or your retirement fund can be used for financing educational
expenses. While the features of these loans differ from federal educational loans, they may meet your financial needs.
Go to top
Do I qualify for a one of these loans?
Eligibility, terms and repayment options for state and private education loans vary widely. Schools are commonly involved in determining eligibility for these loans because many of these loans parallel the processes of the federally
sponsored loan programs. State education loan programs are generally available to residents of the state or students attending school in that state. Private educational loans will frequently require income or credit criteria to
qualify.
Go to top
How much can I borrow?
Almost all educational loans are limited to the cost of education less total financial aid received. The actual definition of the cost of education is on a school-by-school basis and is mandated by the Federal Government. State loans
are also normally subject to annual limits that vary depending on your year in school and whether you are classified as a dependent or independent student by the federal definition. Non-educational loans used for educational purposes
would not normally have such restrictions.
Go to top
What are the terms?
Of course they vary widely, but state program and other non-profit programs tend to have lower rates and longer repayment periods like the federal programs and private programs tend to have less restriction on how much you can
borrow.
Fees for origination and insurance tend to be higher with all of these loans than with the federal programs. Additionally, there are fewer discounts and incentives with private programs.
Go to top
How do I apply?
For most state programs the process is through the school and completing the Free Application for Federal Student Aid (FASFAA), the federal form, is the first step. There may also
be separate state and school applications. Private programs will frequently require you to deal directly with the lender or loan provider. Check with your school's financial aid office to see how your private loan might work at your
school.
Go to top
Is there more information?
Visit each state's website to learn more about their specific programs and how to apply for them. Click here to see a list of some of the sites you may want to visit. Remember to visit the
website of both your state of residence and the state in which you plan to attend school.
To find a BHESC lender for your area, click here.
|
