Educating students and parents about student loans
By Beth Ziehmer
July 02, 2018
Student loans are sometimes a difficult issue for students and parents to discuss. Education is key to understanding the terms and conditions for borrowing and successfully repaying the loans.
First and foremost, remember that the student loans must be repaid! Students should exhaust other sources of financial aid that they typically don't have to repay (such as grants, scholarships, and work-study) before applying for loans. Student loans should be a last resort.
There are several types of student loans:
- Direct Subsidized or Unsubsidized Loans
- Direct PLUS Loans:
- Health Professions Student Loans
- Federal Nursing Student Loans
- Alternative/private loans
- Direct Consolidation Loans
Student loan borrowers will need to complete a Master Promissory Note (MPN) and entrance counseling before the loan can be disbursed. When the student drops below half-time status, withdraws, or graduates, the student will be directed to complete exit counseling. The entrance and exit counseling sessions are required by federal regulation to help the student understand the terms of the loan and promote successful repayment.