Federal Direct Loan—Subsidized and Unsubsidized
Subsidized loans are awarded based on financial need, and while you’re enrolled in school, the federal government pays the interest on your loan. For detailed information and current interest rates, visit www.studentaid.gov.
An unsubsidized loan is awarded to students who don’t qualify for need-based subsidy or are independent students. The government does not pay interest on this loan and the student may choose to pay on interest as it accrues or have it added to the principle balance quarterly. The interest rate is fixed for the life of the loan.
Independent students can receive additional unsubsidized Direct Loan funds. (Available to students who don’t have access to the Parent PLUS Loan. This typically occurs when a parent is denied for the PLUS Loan.)
A note about Direct Loans: Your ability to borrow through the Federal Direct Student Loan Program increases as you progress through your four years at Gordon College. Some years a portion of your need-based Gordon grant may be replaced by this increased loan eligibility.
Two types of parent loans are available - the federal Parent PLUS and alternative parent loans. Parents can borrow up to the cost of attendance minus any other financial aid awards. The parent is solely responsible for repayment of these loans. Repayment options include immediate repayment and interest-only payments while the student is in school.
Alternative Student Loans
These loans are acquired through your bank, credit union, or state agency (but if you want, you can look at our preferred list). Make sure you pay attention to interest rates and how they are calculated, repayment terms, and the opportunity to defer if your student wants to attend graduate school.