When considering aid alternatives, there is a definite order to follow.  If your total need isn’t met by scholarships, grants, and/or work-study, there are alternatives to consider.

The U.S. Department of Education’s federal student loan program is the William D. Ford Federal Direct Loan (Direct Loan) Program. Under this program, the U.S. Department of Education is your lender. 

• Subsidized Federal Loans
  This is a need based long-term, interest-based loan designed to provide undergraduate students with funds to help pay for their education. Subsidized means the interest on the loan is paid by the government while a student is in school. Students will be contacted by their loan servicer to begin repayment after student has not been enrolled for at least six months.
  

• Unsubsidized Federal Loans
  This is a non-need based, long-term, interest-based loan designed to provide undergraduate students who do not qualify for other financial aid but still need to borrow to pay for their education. Unsubsidized means students are responsible for the interest on a loan while in school; however it is possible payments can be postponed until after graduation. Additional unsubsidized loans for independent students may be requested according to the cost of attendance in certain programs.

Annual loan limits (1/2 of the loan for each full-time semester):

Freshman Dependent:  $3,500 subsidized / $2,000 unsubsidized
Freshman Independent: $3,500 subsidized / $6,000 unsubsidized

Sophomore Dependent: $4,500 subsidized / $2,000 unsubsidized
Sophomore Independent: $4,500 subsidized / $6,000 unsubsidized

Note: Regardless of the number of credit hours transferred in from other institutions, Sophomore is the highest level of classification at Arkansas State University Three Rivers as the highest-level degree offered at this institution is an Associates.

All students utilizing Direct Loans must remain within loan aggregate limits.
Aggregate loan limits describe the maximum amount of money students can borrow throughout their entire education. Direct Subsidized Loans and Direct Unsubsidized Loans have annual loan limits that vary based on the student’s grade level and (for Direct Unsubsidized Loans) dependency status. The annual loan limits are the maximum amounts a student may receive for an academic year and must remain within the total allowable loan limits in a lifetime. For additional information, visit Federal Student Aid, “Understanding Aid”.

 For information on Federal Loan interest rates, visit Federal Student Aid.