What types of loans are available to students with financial need?
Several low-interest loans, guaranteed by the federal government, are available for students with demonstrated financial need: The Federal Direct Stafford Loan provides federally subsidized loans for up to $3,500 per year for first-years, $4,500 for sophomores, and $5,500 for juniors and seniors. The government pays the interest while the student is in college, and no repayment is required until six months after graduation. Students apply for this loan directly through Williams College. Students who do not demonstrate need are eligible to borrow through the unsubsidized Federal Direct Stafford Loan Program. Loan limits and repayment are the same as the subsidized program. However, the in-school interest is paid by the student borrower and not by the federal government. Federal Perkins Loans are federal loans available through Williams. According to federal regulations priority for these loans must be given to students with “exceptional need.
Sarah Lawrence commonly awards two types of federally administered student loans: the Perkins Loan and the Stafford Loan. Federal Perkins Loans are awarded to students who demonstrate the greatest need. This loan carries a 5 percent interest rate, which accrues six or nine months after graduation or as soon as the borrower drops below half-time status. Repayment also begins at that time and usually continues over a 10-year period. Federal Stafford Loans are available through the federal government and a lender of your choice. If you demonstrate “need,” you are eligible for the subsidized Stafford Loan, on which the federal government pays interest as it accrues until six months after your graduation or the point at which you drop below half-time status. If you do not demonstrate “need,” you are eligible for an unsubsidized Stafford Loan, on which the interest must be paid while you are in school. As with the subsidized loan, repayment of principle begins six months after you graduate o
