Students apply for consideration for Federal Direct Loans (glossary) and Federal Perkins Loans (glossary) by completing the FAFSA.

A Federal Direct Subsidized Stafford Loan is awarded on the basis of the student's financial need and other specific eligibility requirements. The federal government does not charge interest on these loans while borrowers are enrolled at least half-time or during authorized periods of deferment. Payments are not required while borrowers are enrolled at least half-time, during a six-month grace period, or during authorized periods of deferment.  

A Federal Direct Unsubsidized Stafford Loan is not based on the student's financial need, but students must also meet specific eligibility requirements. Interest is charged throughout the life of the loan at a 6.8% interest rate. The borrower may choose to pay the interest charged on the loan or allow the interest to be capitalized (added to the loan principal). Payments are not required while borrowers are enrolled at least half-time, during a six-month grace period, or during authorized periods of deferment.   

The Federal Perkins Loan is awarded on the basis of financial need demonstrated by the Free Application for Federal Student Aid (FAFSA). Students are encouraged to apply early as the funds are limited. No interest is charged while the student is in school. Interest accrues at a fixed 5% after the grace period. Repayment begins nine months after the student ceases to be enrolled at least half time.

A separate application is required for the following loans:

The Federal Direct Parent PLUS Loan for Undergraduate Students is not based on financial need and is limited to a parent borrower for a dependent student. A parent is currently defined as a person's natural or adoptive mother or father, step-parent, or legal guardian. The annual limit is equal to the student's cost of attendance, as defined by LSU, minus any other financial aid the student is receiving. Parents are required to pass a credit check. Interest is charged throughout the life of the loan at a 7.9% interest rate.

The Federal Direct Graduate PLUS Loan for Graduate Students is not based on financial need and is limited to a graduate/professional student. The annual limit is equal to the student's cost of attendance, as defined by LSU, minus any other financial aid the student is receiving. Students are required to pass a credit check. Interest is charged throughout the life of the loan at a 7.9% interest rate.

Alternative loans are private (non-federal) loans. Unlike the previously mentioned loans, you are not considered for these loans when you complete the FAFSA. The terms vary widely as do the eligibility criteria.

You (and your co-borrower, if applicable) should carefully research the options and apply for the alternative loan that best suits your needs. Keep in mind that usually your best option is to pursue federal loans. Be sure you have applied for all of the federal loans you are eligible for before you consider private loans. If you do wish to take out a private educational loan, you need to provide any documentation requested by the sponsor of the loan and follow the application procedure that is specific to that loan.

Please click here for a list of alternative loan providers.