Apply for a Loan

Before you apply for a loan, be sure you get all the free state and federal money that may be available to you. You should also take advantage of all the available government tax credits and deductions.

If your total need isn’t met by scholarships, grants or work-study, there are several kinds of education loans to consider. All these loans are different and may have different repayment options.

The first loans you should consider are federal education loans which include Stafford Subsidized and Unsubsidized Loans, PLUS Loans, and Perkins Loans.

If you still have a funding gap, you should then consider the state-sponsored, fixed-interest-rate New York Higher Education Loan Program (NYHELPs) loan.

Private or alternative loans, which usually have variable interest rates which can increase over time, should be considered last. Compare these loans in the Smart Borrowing section of Paying for College.

A loan must be paid back – with interest. Use loans as a last resort. If you do need to take out a student loan, go about it in a smart way. Borrow only what you need and can afford, and take the time to compare loans for interest rates terms, and a repayment plan that meets your needs. And remember, you’ll have to repay your loan even if you don’t finish college.