There are several different types of student loans that are available. They include:

        GSL or Stafford Loans are guaranteed by the federal government. GSL's have a lower interest rate than other types of loans. You can get either subsidized and/or unsubsidized GSL and Stafford Loans.

        With subsidized loans, the government pays your interest for you while you are in school. With unsubsidized loans, you will be charged interest while you are going to school, but do not have to begin paying the loan until you are done with school.

        Subsidized loans are based on financial need, and unsubsidized loans are available without showing financial need. You must begin paying these loans 6 months after you leave school.

•        PLUS Loans (Federal Parent Loans)

        Parents or guardians with a dependent child in an at least part-time program are eligible for PLUS Loans. The interest rate for a PLUS Loan is 9% or less, plus fees.

        These loans are available regardless of your income, but lenders will consider your credit history. You have to start repaying a PLUS Loan 60 days from when the loan is given to you.

•        Direct Student Loans (Perkins Loans):

        Direct Student Loans are handled directly by the school you are attending. The interest rate is lower than a GSL. You have to start repaying between 6 and 9 months after you finish school.

        Pretty much. You can use the student loans described here at most community colleges, universities, business or vocational schools, and in some cases, at BOCES' programs.

        It depends on the type of loan you are applying for. You can apply for most loans through the Free Application for Federal Student Aid (FAFSA). You can get a FAFSA from your school, your high school, or at a public library. The FAFSA must be completed before you will know how much aid you will get.

Who can apply for student loans?

        Anyone can apply. Read the eligibility requirements for each loan, or ask you school for more information. If you are financially dependent on your parents, you must have your parents or guardians fill out part of the form. If you are independent, you may apply on your own. Please note that if you are an independent minor, there are special eligibility requirements. Ask your school or loan program how these rules may apply to you.

        There are many loan handlers depending on the types of loans that you have. It is important to know who handles your student loans and how to contact the loan handlers.

        Your school may handle your loan directly in some instances. In other instances, such as with GSL and PLUS Loans, the New York State Higher Education Services Corporation (HESC) handles your loans. In other instances, the Federal Direct Loan Program, through the U.S. Department of Education, handles your loans. And, in some cases, a bank or private lender may handle your loan. Check your collection notice to determine who holds your loan, or call the Federal Student Aid Information Center at 1-800-433-3243 for more information.

        Yes. These programs are grants, not loans, and do not require repayment. For more information on these programs, contact HESC at 1-800-474-5642. They include:

• Tuition Assistance Program (TAP): TAP is a grant based on your NYS Taxable Income. You must be attending a full-time NYS school to be eligible.
• Pell Grant: A Pell Grant is based on financial need for students enrolled at least 3 credit hours per semester.
• NYS Educational Opportunity Programs: This is a tuition waiver program for New York State residents that are academically and financially disadvantaged who are attending New York schools.

        There are many confusing terms that you may encounter when you are trying to figure out student loan repayment issues. The list below includes some of the most common definitions.

•        Borrower: The borrower is the person that is responsible for repaying a loan.

•        Capitalization: Capitalization is the interest that builds up over time and is added to
          your principal. This is called capitalized interest. This interest increases the total cost
          of your loan.

•        Consolidation: Consolidation is the act of combining some or all of your student loans
          into one loan, with one interest rate, and one payment per month.

•        Default: You may be placed in default status if you fail to repay your loan. A default
          status affects your credit rating and your ability to obtain future loans and grants.

•        Deferment: A deferment is a postponement of payments on your loan that you can
          get under certain specific conditions (e.g., you are still in school, are unemployed, etc.).

•        Discharge: A discharge is a release from your obligation to repay your loan permanently.

•        Fees: Fees are extra expenses that are added to your total loan amount due, or
          subtracted from the amount of money you receive when the loans are disbursed.

•        Forbearance: A forbearance is a period of time when you do not have to make
          payments on your loan because special circumstances exist and you do not qualify
          for a deferment.

•        Grace Period: The grace period is a six or nine month period after you leave
          school and before you must begin making payments on your student loans.

•        Interest: Interest is an expense of borrowing money. Interest is based on a
          percentage of your total loan.

•        Principal: The principal is the total amount owed on a loan.

Who do I contact for more information about my loans?

        You should contact your school or your lender about specific questions about applications and rules that may affect you, or you can try the following telephone numbers:

•        Direct Loans (Federal Direct Loan):          1-800-848-0979 OR 1-800-557-7392

•        HESC - for general information:                 1-800-NYSHESC (697-4372)
•                    - for loan and account status            1-800-642-6234

•        FAFSA Application Status:                         1-319-337-5665

•        Federal Student Aid Information Center:  1-800-433-3243

•        Neighborhood Legal Services, Inc.              1-716-847-0650

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