Federal Perkins Loan
A Federal Perkins Loan is a low interest (5 percent) loan for both undergraduate and graduate students with exceptional financial need. Alabama Agricultural and Mechanical University (A&M) is your lender. The loan is made with government funds with a share contributed by the school. You must repay this loan to A&M.
Depending on when you apply, your level of need, and the funding level of A&M, you can borrow up to $4,000 for each year of undergraduate study (the total amount you can borrow as an undergraduate is $20,000, if you have completed two years of undergraduate work; otherwise, the total you can borrow is $8,000). $6,000 for each year of graduate or professional study (the total amount you can borrow as a graduate/professional student is $40,000, including any Federal Perkins Loans you borrowed as an undergraduate).
Federal Direct Stafford Loans
Stafford Loans are a major form of self-help aid for students. Stafford Loans at Alabama A&M University are processed through the FFEL Program. FFEL Stafford Loans are either subsidized or unsubsidized. You can receive a subsidized loan and an unsubsidized loan for the same enrollment period.
A subsidized loan is awarded on the basis of financial need. You will not be charged any interest before you begin repayment or during authorized periods of deferment. The federal government "subsidizes" the interest during these periods.
An unsubsidized loan is not awarded on the basis of need. You'll be charged interest from the time the loan is disbursed until it is paid in full. If you allow the interest to accumulate while you are in school or during other periods of nonpayment, it will be capitalized-that is, the interest will be added to the principal amount of your loan and additional interest will be based upon the higher amount.
Federal Direct PLUS Loans
PLUS Loans enable parents who do not have an adverse credit history to borrow to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half time. PLUS loans are available at Alabama A&M University through the FFEL Program.
Federal Consolidation Loans
A Consolidation Loan is designed to help student and parent borrowers simplify loan repayment by allowing the borrower to combine several types of federal student loans with various repayment schedules into one loan. You can even consolidate just one loan into a Direct Consoldiation Loan, in order to get benefits such as flexible repayment options. If you have more than one loan, a Consolidation Loan simplifies the repayment process because you make only one payment a month. Also, the interest rate on the Consolidation Loan might be lower than what you're currently paying on one or more of your loans. And if you are in default on a federal student loan, you might be eligible for a Consolidation Loan if certain conditions are met.