A federal student loan is money borrowed to help pay the cost of a student’s education that must be repaid with interest. Loans are legal obligations. Before you take out a student loan, think about the amount you will have to repay over the years.
You cannot have these loans canceled because you didn’t like the education you received, didn’t get a job in your field of study, or you’re having financial difficulty. Visit studentaid.gov to learn more about federal student loan programs and repayment options.
TYPES OF LOANS
A. Federal Direct Student LoansThese low-interest loans for students and parents are offered through the U.S. Department of Education. Direct loans can be subsidized or unsubsidized:
- Subsidized loans are awarded based on financial need. If you qualify, the federal government pays interest on the loan until you begin repayment. Loan proceeds are disbursed in two equal installments credited to your CIA student account.
- Unsubsidized loans do not require a demonstration of financial need. If you qualify, 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 or allow it to accumulate. If you allow the interest to accumulate,
it will be capitalized—that is, the interest 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 accumulates, you will repay less in the long run.
- Degree program freshmen can borrow up to $5,500 (including up to $3,500 Subsidized).
- Degree program sophomores can borrow up to $6,500 (including $4,500 Subsidized).
- Juniors, seniors, and students in the undergraduate certificate program can borrow up to $7,500 (including $5,500 Subsidized).