Federal Student Loans Frequently Asked Questions

If you do not find the answer to your question(s) here, please call a loan counselor at (800) 243-7552, or e-mail us.

Are there deadlines for financial aid?
What is the FAFSA form?
Am I a “dependent” or “independent" student?”
I am a parent whose credit rating is not so good. Will my child still be able to get loans?
If I am awarded financial aid, when will I receive it?
What if I only go to school part time? Can I still get financial aid?
Do I have to pay back my loans if I don't finish school or am unsatisfied with my education?
What is the difference between a subsidized and an unsubsidized loan?
Do all schools offer federal financial aid?

Q. Are there deadlines for financial aid?

A. By submitting your aid forms as early as possible, you increase your chances of receiving a good financial aid package. Some aid is awarded on a first-come, first-served basis. The FAFSA (Free Application for Federal Student Aid) can be completed on or after January 1 of each year you apply for financial aid. In addition, your college or university of choice may have deadlines of which you need to be aware.

Q. What is the FAFSA form?

A. The Free Application for Federal Student Aid (FAFSA) form will determine your eligibility for all federal financial aid programs. It allows the Department of Education to determine how much a family can afford to pay toward a student’s college expenses. The determination is based on household income and other factors, including the anticipated cost of attending college.

The FAFSA and EZ FAFSA are free forms that may be completed without professional assistance via paper or electronic forms provided by the U.S. Department of Education.

Q. Am I a “dependent” or an “independent” student?

A. You are a dependent student UNLESS you meet one or more of the following criteria:

• At least 24 years of age by Dec. 31 of the school year.



• A graduate or professional student.



• A married student.



• A veteran of the United States Armed Force or currently serving on active duty in the Armed Forces for other than training purposes.



• An orphan, in foster care, or ward of the court, at any time when you are 13 years of age or older.



• An emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in your state of legal residence.



• Have legal dependents other than your spouse.



• Have been verified during the school year as either an unaccompanied youth who is homeless, or as an unaccompanied youth who is self-supporting and at risk of homelessness.



• A student for whom a financial aid administrator makes a documented determination of independence.

Q. I am a parent whose credit rating is not so good. Will my child still be able to get loans?

A. Federal Stafford Loans do not require a credit check. If your son or daughter has a defaulted student loan, they may not be able to obtain a new federal student loan. A Federal PLUS Loan (parent loan), however, does require a credit check. If parents apply for, but are denied a PLUS loan, students will have the option to borrow additional Stafford Loans funds.

Q. If I am awarded financial aid, when will I receive it?

A. Most financial aid will be sent to your school on a date your school has predetermined. If you are awarded more aid than what you owe your school, your school will refund the difference to you, on a date that they have predetermined.

Q. What if I only go to school part time? Can I still get financial aid?

A. Most types of financial aid are available to students who are attending at least half time (generally at least six credit hours).

Q. Do I have to pay back my loans if I don't finish school or am unsatisfied with my education?

A. If you received loan funds, you are responsible for repayment of the loans, even if you don’t finish school or are unsatisfied with your education.

Q. What is the difference between a subsidized and an unsubsidized loan?

A. If you receive a subsidized loan, the federal government pays the interest for you while you are in school, during your grace period and during some authorized periods of deferment after you leave school. You are responsible for the interest on an unsubsidized loan, but may be able to defer those payments until after school, during your grace period and during some authorized periods of deferment after you leave school. When you defer payments, interest will accrue and will be added to your loan; therefore, deferring payments for an extended period of time may substantially increase your loan balance. It is in your best interest to make payments – even while attending school and before entering repayment – that at least cover your accrued interest in order to avoid increases in your loan balance.

Q. Do all schools offer federal financial aid?

A. No. Only schools that have been accredited by an agency recognized by the Secretary of Education are eligible for federal student aid. To find out if your school is eligible, you can call the Federal Student Financial Aid Information Center at (800) 4FED-AID.