Types of loans
Direct subsidized loans are for students with demonstrated financial need. ANU will review the results of your Free Application for Federal Student Aid (FAFSA) and determine the amount you can borrow. You are not charged interest while you're in school at least half-time and during grace periods and deferment periods. The interest rates for subsidized loans with a first disbursement date between July 1, 2011, and June 30, 2012 are 3.4% for undergraduates and 6.8% for graduate students.
You are not required to demonstrate financial need to receive a Direct Unsubsidized Loan. Like subsidized loans, ANU will determine the amount you are eligible to borrow. Interest accrues (accumulates) on an unsubsidized loan from the time it is first disbursed even during the time a student is in school and during grace and deferment periods. You can pay the interest while you are in school and during grace periods and deferment or forbearance periods, or you can allow it to accrue and be capitalized (that is, added to the principal amount of your loan). If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay because you will be charged interest on a higher principal amount.
The interest rates for unsubsidized loans with a first disbursement date between July 1, 2011, and June 30, 2012 is 6.8% for all students.
PLUS loans are for the parents of dependent undergraduate students and for graduate/professional students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.
Direct PLUS loan for parents of dependent undergraduate students
Direct Parent PLUS loans are federally guaranteed loans that allow parents to borrow funds to pay for the educational expenses of their dependent undergraduate student. These loans are need based and parents are eligible for this loan if the child is a dependent undergraduate student as defined by the US Department of Education. Parents may borrow up to the total cost of attendance minus any other funding. The program requires the borrower (Parents) to pass a simple credit check. Interest begins to accrue when funds are disbursed and repayment begins within 60 days after the loan has been fully disbursed.
Direct graduate PLUS loans
The Federal Graduate PLUS Loan is a low interest federally backed student loan, guaranteed by the US Government. Like its undergraduate counterpart, the Graduate PLUS Loan can be used to pay for the total cost of education less any aid you've already been awarded. Also like the undergraduate version, eligibility for the Graduate PLUS Loan is largely dependent on the borrower's credit rating and history, as opposed to the purely financial need-based subsidised loan.The interest rates for PLUS loans with a first disbursement date between July 1, 2011, and June 30, 2012 is 7.9% for both Graduate and Parent Borrowers.
At current Sallie Mae is the only lender offering private student education loans to students studying outside of the USA, you can view information regarding the “smart option” loan and submit your applications on-line.
ANU recommends that all students considering a private loan take the time to explore their options and choose a lender wisely; there may be other lenders who are offering private education loans.