Financial Aid Packages

• When you apply for financial aid, you will first complete a Free Application for Federal Student Aid, provided by the United States Department of Education. The application is available online and you can enter your information directly through the FAFSA website. Once your application is complete, you can have it sent to the schools that you are interested in attending. Your school the uses the information from the FAFSA to determine what types of financial aid you can receive. Not all schools participate in the same financial aid programs, but if your school does offer both Perkins and Stafford loans, its financial aid department considers your eligibility for both.
  
  

Stafford Loans

• The Direct Stafford Loan program provides students who need to borrow money for school with low-interest loans. While in previous years, Stafford Loans were issued through private lenders, since July 1st, 2010, these loans are issued only through the Department of Education. Depending on your financial situation, you may be entitled to a "subsidized" loan, which doesn't accrue interest while you are in school or the loan is in a deferment or grace period, or an "unsubsidized loan" that does accrue interest during your time in school or deferment. A Direct Subsidized Loan accrues interest once you enter your repayment period.
  
  

Perkins Loans

• A Perkins Loan is a federal loan program that makes additional loans available to students who financially qualify. The difference between a Perkins Loan and the Direct Stafford Loan program is that the Perkins Loans funds are provided by the government to your school. The school itself then issues the loan and you are responsible for repaying the loan to your school, instead of the Department of Education.
  
  

Consolidation

• While Direct Stafford Loans and Perkins Loans are offered through two separate programs, it is possible for you to consolidate both Perkins and Stafford loans into one loan. If you are having trouble paying your student loans, consolidation can let you extend your repayment period, thus reducing the amount you need to pay each month.