Federal Stafford (for students)

Federal Loans are either subsidized or unsubsidized. The government pays the interest on subsidized loans while you are in school. You are required to pay the interest on unsubsidized loan, including the amount that accrues while you are in school.

The Federal Stafford subsidized loan is awarded on the basis of financial need, and is determined by the information provided on the Free Application for Federal Student (FAFSA). If you qualify for a subsidized loan, the federal government pays interest on the loan until you begin repayment during authorized periods of deferment thereafter.

The Federal Stafford unsubsidized loan is not awarded on the basis of need. If you qualify for the unsubsidized loan, you will be charged interest from the time the loan is disbursed until it is paid in full. You can choose to pay the interest while you are in school or allow it to accumulate. If you allow it to accumulate it will be added to the principal amount of your loan and will increase the amount you have to repay. If you pay the interest as it accumulated, you’ll repay less in the long run.

 

Federal PLUS Loan

The FFEL Program Loans for Undergraduate Students (PLUS Loans) allow parents with good credit histories to borrow and pay the education expenses of each child who is a dependant undergraduate student enrolled at least half time. The yearly limit on the amount to be borrowed under a PLUS Loan is equal to the cost of attendance minus any other financial aid for which the student is eligible. The interest rate is variable but will never exceed 9%. The interest rate adjusts each year on July 1. Parents will have to begin repaying the loan within 60 days after the final loan disbursement. There is no grace period for these loans. Interest begins to accumulate at the time the first disbursement is made.

 

A FFEL Program Consolidation Loan is designed to help student and parent borrowers consolidate several types of federal student loans with various repayment schedules into one loan. You must have at least $7000 in students loans through different financial institutions.

 

• Make one easy payment

• Extend payment periods

• Fixed Interest Rate that will not change over the life of the loan

• Choose from a variety of repayment plans

These Federal Family Education Loans are available through Educational Communitys Credit Union and Great Lakes Educational Loan Services, Inc.

Contact ECCU for more information and an application. For current rates on the Federal Family Education Loan or the Federal Consolidation Loans, click on "rates" below. You can also log on to Great Lakes Educational Services Inc. for more information.