Loans are money you borrow that must be repaid with interest. Data shows that a degree leads to greater earning potential at both the undergraduate and graduate level, so when you borrow to pay for your education, you're making an investment in the future.
The cost of attendance may be offset by other forms of financial assistance, such as scholarships, grants and work study. Loans can help with the rest.
AJU participates in several low-interest federal loan programs for students and their families. Eligibility for federal loans require a FAFSA to be completed each year. In addition to these direct federal loans to students, there are also private loans available for further financing.
Types of Loans:
Federal Direct Loan
The Direct Loan is a federal loan awarded when you complete a FAFSA. The amount available depends on your grade level, and there may be an option to add an additional loan if your parents did not qualify for a Direct Parent PLUS loan.
A credit check is not required for this type of loan, which typically carries the lowest interest rates available.
Interest on the loan begins accruing as soon as the first of the funds are distributed, but if you qualify for the subsidized version of the loan (undergraduate students only), the government will pay that interest while you are in school. Repayment is not required on this type of loan until 6 months after leaving school.
Federal Direct Parent Plus Loan
This federal loan is made to the parents of dependent undergraduate students and a credit check is required. The interest rate on the Direct Parent PLUS Loan is higher than the Direct Loan made to students, but typically lower than a private loan. Interest will begin accruing as soon as the first disbursement of funds is made, but repayment is delayed until 60 days after the loan is fully disbursed, or when completing the application, you may choose to defer payment until after your student leaves AJU.
Alternative loans are offered by third-party, private lenders. A credit check is required, and they are not based on financial need. Alternative loans have fixed or variable interest rates which depend on the borrower's credit, co-signer's credit, and the loan market.
Once you and your family have considered institutional and federal loan options, you can use the California Private Loan Marketplace to compare rates and terms instantly and accurately from multiple private loan lenders side-by-side. This will help you make an informed decision about the most appropriate loan for you. The Marketplace displays products from local and national lenders, complete with detailed listings of APRs (annual percentage rates), interest rates, total cost, monthly payments, borrower benefits, fees, and repayment options.
Another private loan resource is FASTchoice.
Please ensure that you are aware of and have exhausted other potential sources of funding and discussed the availability of federal, state, and institutional financial assistance with the AJU Director of Financial Aid before turning to private loans.