Mesa Community College

Types of Loans:

All Students are eligible for Student Loans. When you completed the FAFSA (Federal Application for Financial Student Assistance) you set into motion a process to determine your elegibility for different types of Financial Aid. Your Award Letter will clearly state what type of Financial Aid you are qualified to receive and for which you may apply.

Click each loan type to learn more about:

FFELP Loans:

FFELP or Private Education loans have more overall benefits to the student borrower. FFELP loans have lower interest rates, approval is not based on credit, interest is paid on Subsidized FFELP Loans while the borrower is in school, and repayment of all FFELP loans will be deferred while the borrower is in school.

PLUS Loans:

A PLUS loan is a Federal loan available to credit worthy parents to help pay the educational cost of their dependent, undergraduate children.

Perkins Loans:

Federal Perkins Loans are low-interest (5 percent) loans for both undergraduate and graduate students with exceptional financial need. Federal Perkins Loans are made through a school's financial aid office. Your school is your lender, and the loan is made with government funds. You must repay this loan to your school.

Stafford Loans (FFELs and Direct Loans):

The funds for your loan come directly from the federal government. Funds for your FFEL will come from a bank, credit union, or other lender that participates in the program. Eligibility rules and loan amounts are identical under both programs, but repayment plans differ somewhat. Stafford Loans can be subsidized or unsubsidized.

• Subsidized:
  A subsidized loan is awarded on the basis of financial need. You won't be charged any interest before you begin repayment or during deferment periods. The federal government "subsidizes" the interest during these periods. The interest rate for subsidized Stafford loans first disbursed on or after July 1, 2009 is fixed at 5.6 percent.
• Unsubsidized:
  An Unsubsidized Federal Stafford Loan (UFSL) is not awarded on the basis of need. You'll be charged interest from the time the loan is disbursed until it's paid in full. If you allow the interest to accrue (accumulate) while you're in school, or during other periods of nonpayment, it will capitalized. This means the interest will be added to the principal amount of your loan, and additional interest will be based on that higher amount. For all unsubsidized Stafford loans first disbursed on or after July 1, 2006, the interest rate is fixed at 6.8 percent.