Student Loans

TYPES OF STUDENT LOANS

Loans are money that must be repaid with interest. Student loans can also come from the federal government, your state government, college or career school, or private sources, such as a bank or financial institution.

Student loans can come from the federal government or from private sources, such as a bank or financial institution. You can check out the differences between federal student loans and private loans at StudentAid.gov/federal-vs-private.
Loans made by the federal government are called "Federal Direct Loans." 

The federal government's Direct Loan program provides low-interest, long-term loans directly to students and parents. The lender (or guarantor) is the U.S. Department of Education (ED) rather than a bank. Loans guaranteed by the federal government have much better rates and payback terms than private loans. Repayment of the loan usually begins six months after you: graduate, withdraw from your classes, or drop below six credit hours during the semester (less than half time).

Direct Subsidized Loan

Available to students who demonstrate financial need on the FAFSA. The federal government pays the loan interest while you attend college and during your six-month grace period.

Direct Unsubsidized Loan

Awarded to all students who are otherwise eligible for federal student aid through the FAFSA. Unlike Subsidized Loans, you do not have to demonstrate financial need be eligible for it. The loan accrues interest as soon as it is disbursed and for the lifetime of the loan (until it is paid off).

Maximum Loan Debt

There are yearly and lifetime maximum loan amounts set by the federal government. If you are unsure of your loan debt, you may check on StudentAid.gov. To view your aid history on StudentAid.gov, click on the black "Log In" box in the upper right corner of the web page, click "Log In to My Federal Student Aid", enter your FSA ID information and click "Log In".  Please note that you will only be able to view the federal loans you have borrowed but not private loans.

Private Loans

Private loans are not federal loans but are considered part of a student's financial aid award. These funds are typically loaned to you by a bank or other non-educational organization based on the borrower’s credit. YTC will certify private loan amounts up to the cost of attendance minus all other aid.