Student Loans must be repaid, but generally have low interest rate. The Federal Direct Loan Program offers the following types of loans for students and parents:
Federal Direct Subsidized Loans
Federal Direct Subsidized Loans are for students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time.
Federal Direct Unsubsidized Loans
Federal Direct Unsubsidized Loans are not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods. The borrower may choose to pay the interest charged on the loan or allow the interest to be capitalized (added to the loan principal) when the loan enters repayment.
Federal Direct Parent PLUS Loans
Federal Direct Parent PLUS Loans are unsubsidized loans for the parents of dependent students. Federal Direct Parent PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. The school will determine the actual amount you may borrow. Federal Direct Parent PLUS loan borrowers are subject to a credit check. Dependent students whose parents have applied for but were unable to get a PLUS Loan are eligible to receive additional Federal Direct Unsubsidized Loan.
For more detailed information on the Federal Direct Loan Program, please visit www.studentloans.gov.
Bergen Community College
400 Paramus Road
Paramus, NJ 07652