Comparison of Loan Options for Funding your Education

A Closer Look at the Federal Direct Student Loan

The Federal Direct Student Loan is typically the student's best option for borrowing entirely in the student's name without a co-signer based on its ease of access, low fixed interest rate, and repayment options. Therefore, it is usually in the student's best interest to maximize their federal student loan amount ($5,500 freshman year for dependent students, $9,500 for independent students) before considering alternative loan options to pay the gap. Here are some things to know about the Federal Direct Student Loan:

*For dependent students. Independent students can receive up to $6,000 in unsubsidized loans in addition to the $3,500 subsidized loan.



**Independent freshmen students can take out a maximum of $4,750 per semester.

If additional loans are needed after maximizing the Federal Direct Student Loan, research and compare options closely. To access the Federal Parent PLUS loan, an application and Master Promissory Note are required through Federal Student Aid. To take out private loans, start by asking your college for their historical or preferred lender list comprised of banks with which they may have a relationship. FinAid's Loan Comparison site is also a good resource for beginning your research on private loan options.