Types of Loans
A college education is a major investment. Fortunately, financial aid is available to help almost everyone manage the cost. While it is best to use as much savings or free financial aid as possible to pay for your education, you may still need to borrow money.
If you would like additional information, contact your lender or the financial aid office at the school you plan to attend. You may also contact the Oklahoma Guaranteed Student Loan Program (OGSLP) at www.ogslp.org or by calling the OGSLP borrower hotline at 800.442.8642.
Topics
What types of federal student loans are available?
How do I apply for a federal student loan?
How much can I borrow?
Check out these additional borrowing tips
What types of federal student loans are available?
The Federal Family Education Loan Program
(FFELP) offers three types of federal loans:
Subsidized Federal Stafford Loans are low-interest loans that are based on financial need.
Interest is paid by the federal government while you are attending school at least half-time,
during the six-month grace period following graduation or a change in enrollment status, and
during specified loan deferment periods.
Unsubsidized Federal Stafford Loans are low-interest loans that are not based on financial
need. You are responsible for all interest accrued on unsubsidized loans from the date the loan is
disbursed, including the time that you attend school and during grace periods and any type
of loan deferment.
Federal PLUS Loans are low-interest loans made to parents of dependent undergraduate students (parents must be the biological or adoptive parent of their dependent) and to graduate or professional students. PLUS loans are not based on financial need.
For graduate or professional student PLUS loan borrowers, the first payment is due within 60 days after full disbursement unless the borrower qualifies for a deferment. This also applies for parent PLUS loan borrowers with loans that are disbursed prior to July 1, 2008.
For Federal PLUS loans that are first disbursed on or after July 1, 2008, there are two repayment options offered for parent borrowers. Parent PLUS loan borrowers can:
How do I apply for a student loan?
Federal Stafford Loans
To receive a Federal Stafford loan, you must attend an eligible school at least half-time. Also, you
must be a U.S. citizen or an eligible non-citizen. To apply for a student loan, as well as to find out
if you are eligible for federal grants and work-study, you must complete a Free Application for
Federal Student Aid (FAFSA). You can complete the FAFSA online at www.fafsa.ed.gov. You can
also obtain a paper copy of the FAFSA by calling toll-free 800.4.FED.AID, visiting any financial aid office and most public libraries, or by calling OGSLP at 800.442.8642.
After you complete and return the FAFSA to the U.S. Department of Education, you will receive a Student Aid Report (SAR). At that time, you must review the SAR to ensure that all information submitted is correct. The information from the SAR will then be sent electronically to the school(s) listed on your FAFSA. After all application materials are complete, the financial aid office will notify you of your eligibility for federal student aid, including any loan eligibility.
Federal PLUS Loans
To apply for a Federal PLUS loan, parents and graduate or professional students should contact their
lender or the financial aid office at the school, college or university the student plans to attend.
Parent applicants do not have to show financial need to qualify and are not required to complete the FAFSA. However, all graduate and professional student applicants must first complete the FAFSA. Applicants with an unfavorable credit history are not usually eligible for a Federal PLUS loan.
What do I need to do to get a federal student loan once my eligibility is confirmed?
If you are eligible for a Stafford Loan (subsidized or unsubsidized), you will be given a Master Promissory Note (MPN), which is a legal agreement of repayment between you and your lender. The school may deliver the MPN in a paper or electronic format. After your loan has been approved, the lender will send the loan funds to your school.
With the MPN, you may be eligible to receive multiple loans under one note for a maximum 10-
year period.
Federal Stafford Loans
The following charts show the maximum loan amounts for a full academic year. Your financial need, other sources of aid, cost of attendance and length of academic year - which is defined by your school - may affect the amount you can borrow.
Grade Level |
Total Subsidized & Unsubsidized |
First Year |
$5,500 |
Second Year |
$6,500 |
Third Year and Beyond |
$7,500 |
Graduate/Professional |
N/A |
* Dependent students whose parents are able to borrow a PLUS loan
Grade Level |
Subsidized Limit |
Unsubsidized Limit** |
|---|---|---|
First Year |
$3,500 |
$9,500 |
Second Year |
$4,500 |
$10,500 |
Third Year and Beyond |
$5,500 |
$12,500 |
Graduate/Professional |
$8,500 |
$20,500 |
Health Professions |
$8,500 |
$47,167† |
* Dependent students whose parents are unable to borrow a PLUS loan
** Less amount borrowed under Subsidized Loan Program
† $47,167 is the total annual graduate professional Stafford loan maximum of $20,500
plus the maximum Health Education Assistance Loan of $26,667 in additional
unsubsidized Stafford loans
Note: Your annual Federal Stafford loan eligibility is determined by your school’s financial aid office. Please contact your financial aid office if you have eligibility questions. The unsubsidized Federal Stafford loan amount that health professions students may borrow annually is based on the student’s academic program and the length of the academic year.
In addition to the maximum amounts you can receive each year, Federal Stafford loans have a total aggregate limit that you can't exceed.
Classification |
Total Loan Limit |
|---|---|
DependentΛ Undergraduates |
$31,000* |
Independent and some Dependent† Undergraduates |
$57,500* |
Graduate /Professional |
$138,500** |
Health Professions |
$224,000** |
* No more than $23,000 of which can be subsidized
** No more than $65,000 of which can be subsidized
Λ Dependent students whose parents are able to borrow a PLUS loan
† Dependent students whose parents are unable to borrow a PLUS loan
Federal PLUS Loans
A school’s financial aid office determines how much can be borrowed. The amount depends on the school’s cost of attendance (includes tuition, fees and an estimate of other expenses reasonably related to attending school) and any other financial aid the student may receive. The loan can’t exceed the cost of attendance.
Non-Federal Alternative or Private Loans
Many lenders offer loans outside the federal loan program; these
are called “alternative” or “private” loans. These loans allow you to
borrow money to cover the gap between the cost of your
education and the amount of financial aid you receive in the form
of grants, scholarships, and federal student loans. Terms and
conditions and eligibility requirements for these loans vary by
lender. Since alternative or private loans can have higher interest rates and
may offer fewer flexible repayment options, you should consider
them only after you’ve exhausted all of your federal loan options.
Check out these additional borrowing tips
Complete the FAFSA as early in the year as possible.
Exhaust all grant and scholarship options before considering a federal student loan.
If you do borrow, exhaust all your federal student loan options before considering non-federal alternative or private loans and avoid putting college expenses on a credit card.
Borrow only what you need to pay school expenses.
Use the same lender for all student loans.
Notify your lender of any changes in your address, school enrollment status or ability to repay.
Know your rights and responsibilities.
Keep copies of all loan correspondence.
Make your loan payments on time.
Don’t be afraid to ask questions.