No one wants to go into huge debt to attend college, but the truth of the matter is that almost everyone graduates from communications degree college with some degree of indebtedness. The types of loans and amount of money available to you and your parents to help pay for your communications degree vary. There are federal loans, state loans and bank loans. What they have in common is that they carry a reasonably low interest rate. Some student loans defer actual repayment until you have graduated and some require immediate payback.

FEDERAL DIRECT LOANS

Direct Loans are low-interest loans for students and parents. The lender is the U.S. Department of Education rather than a bank or other financial institution, and you can choose from several repayment plans.

The Direct Loan Program offers the following types of loans:

• Subsidized: These are loans for students with demonstrated financial need. No interest is charged while a student is in school at least half-time, during a grace period, and during deferment periods.
• Unsubsidized: These loans are not based on financial need. Repayment begins almost immediately and interest is charged during all periods, even during the time a student is in school and during grace and deferment periods.
• PLUS: These are unsubsidized student loans for the parents of dependent students. Interest is charged during all periods.

Your school will notify you of the loan amount and type of loan it is offering, usually in the award letter that lists all of your projected financial aid awards. You should consider the offer carefully. Keep in mind that whatever you borrow must be paid back with interest. You have the right to decline the loan or to request a lower loan amount. It is a wise practice to borrow the least amount needed.

To be eligible for a Direct PLUS Loan for parents:

• The parent must be the student’s biological or adoptive parent. In some cases, the student’s stepparent may be eligible.
• The student must be a dependent who is enrolled at least half-time at a school that participates in the Direct Loan Program. Generally, a student is considered dependent if he or she is under 24 years of age, has no dependents, and is not married, a veteran, or a ward of the court.
• The parent must not have an adverse credit history (a credit check will be done).
• The student and parent must be U.S. citizens or eligible noncitizens.

Generally, you’ll have from 10 to 25 years to repay your loan, depending on which repayment plan you choose—there are many options.

FEDERAL PERKINS LOANS

The Federal Perkins Loan Program provides low-interest loans to help needy students defray the cost of college. Colleges have considerable flexibility in determining the amount of Perkins loans to award to students. Borrowers who assume certain public, military or teaching service employment are eligible to have all or part of their loans canceled. With Perkins student loans, borrowers are not required to begin making payments until after they drop below half-time attendance.