What Are Student Loans?
Similar to the type of loan you might take out to buy a home, a student loan is money you borrow and must pay back with interest. There are two types of student loans: federal student loans and private student loans.
Federal Student Loans
These loans are offered by the federal government. Their conditions and terms are legally set. Benefits include fixed interest rates and repayment plans that start after graduation and can be based on income.
Private Student Loans
State-based or state-affiliated organizations, banks and credit unions offer private student loans. The lender sets the conditions and terms. Compared to federal student loans, private student loans are typically more expensive.i
Learn more about the differences between federal student loans and private student loans in this chart.
Types of Student Loans
|Type of Student Loan||Federal Direct Subsidized||Federal Direct Unsubsidized||Federal Direct Parent Plus||Federal Direct Consolidation||Private|
|Who Can Apply||Students with Financial Need||Students without Financial Need||Parents of Dependent Students||Students||Students|
|Amounts||$3,500 to $5,500 per year**||$2,000 to $12,500 per year**||Training Costs Not Covered by Financial Aid***||Total of All Federal Student Loans Combined****||Varies|
|Fees||1.059%*||1.059%*||4.236%*****||No Application Fee****||Varies|
|7.08% Fixed Interest Rate for the Life of the Loan||Fixed Rate Weighted Average of Rates on Consolidated Loans**||Varies|
|Repayment Schedule||Starts after Graduation, Leaving School or Changing to Half-Time Enrollment*||Starts after Graduation, Leaving School or Changing to Half-Time Enrollment*||Starts after Graduation, Leaving School or Changing to Half-Time Enrollment*||Starts after Graduation, Leaving School or Changing to Half-Time Enrollment*||Varies*|
**Fee for Direct PLUS Loans with a first disbursement date on or after October 1, 2019 and before October 1, 2020
**Fee for Direct Subsidized Loans and Direct Unsubsidized Loans with a first disbursement date on or after October 1, 2019 and before October 1, 2020
**Interest rate for Direct Subsidized Loans, Direct Unsubsidized Loans and Direct PLUS loans first disbursed on or after July 1, 2019 and before July 1, 2020.
How to Get Student Loans
Complete the Free Application for Federal Student Aid (FAFSA) form. Federal student loans may be included in the financial aid offer TWS sends you. Our Financial Aid Advisors will educate you on how to accept part or all of the loan.***
Visit our How to Apply for Financial Aid page to learn more about applying for FAFSA, or call us for additional details on the process of getting federal or private student loans.
Call us at (855) 237-7711.
Student Loan FAQ & Resources
Student Loan Resources
Student Loan Assistance Group
We understand that taking out a student loan is a big responsibility. When managed properly, the rewards of a new skill set and career could be well worth the risks that can come with borrowing money for school. And we’re here to make sure everything goes as smoothly as possible with your student loans.
We take student loan management so seriously, we’ve even created an internal prevention team to make sure students receive the support they need to pay their student loans on time, or defer them if necessary.
TWS’ Student Loan Assistance Group is here to help you after you take out a student loan. Borrowing money for school can be a scary and complicated process, but you don’t have to do it alone.