U.S. Bank understands that it can be difficult deciding how to pay your tuition and other education costs. Here's a crash course to help you understand your options.
Lesson 1: Let Uncle Sam & U.S. Bank Help
Lesson 2: Borrow Sparingly
Lessib 3: Earn Extra Credit
The Federal Family Education Loan Program was created to help students and their
families obtain affordable loans to pay for college. Read on to find out how the
government and U.S. Bank can help you pay tuition and other education expenses.
And there's good news
from Uncle Sam -- since January 1, 1998, the interest paid on federal and alternative education loans is tax-deductible
(Subject to federal limits. Consult your tax advisor about deductibility of interest). For additional tax information, contact us and request or download the Education Loans: Tax Benefits Guide.
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When you accept a student loan, you become legally obligated to repay that loan according to the terms of your agreement.
Therefore, if you borrow heavily, you could face a large and unmanageable repayment schedule after graduation.
For that reason, it's important to explore every possible source of financial aid, including grants and scholarships,
before you seek a loan.
U.S. Bank offers Federal Stafford and Federal PLUS Loans as well as three other U.S. Bank supplemental loans. Remember, it's always best to borrow an amount
you feel confident you can repay. For some help in determining what works for you, check out these helpful guidelines.
Federal Stafford Loans (Student)
Federal Stafford Loans come in two varieties: subsidized and unsubsidized. To determine if you qualify, complete a FAFSA provided by the school you are attending. If you are a high school senior, the guidance office can provide you with a FAFSA. You can also jump start the application process by applying online for a Federal Stafford Loan or complete our online request form and we'll send you an application.
Here's a short description of each of the Federal Stafford Student Loans. To learn more, read our Loan Program Guide.
With a subsidized Federal Stafford Student Loan, the government pays all interest on your loan while you are enrolled at least half-time. In addition, you won't be required to start making interest or principal payments until six months after you graduate or withdraw from school. To qualify, you must demonstrate financial need.
With an unsubsidized Federal Stafford Student Loan, you will be responsible to pay all interest that accrues on your loan while you are in school. However, you do have the option to defer payment of that interest. Once you are out of school, you are obligated to repay the loan and interest according to Federal Stafford Loans repayment provisions.
Federal PLUS Loans (Parents)
Let your parents in on the act too! Federal PLUS Loans are available to the qualifying parents of dependent undergraduate students. These loans are not based on financial need; however, your school may require that you apply for financial aid before your parents take out a Federal PLUS Loan. Unlike Stafford Loans, the parent is responsible for the entire debt and repayment begins immediately.
To help make repayment easier, U.S. Bank offers a 1/4% interest rate discount on PLUS loans made after 7/1/2000 and an additional 1/4% discount for PLUS borrowers who sign-up for autopay from a checking or savings account. Parents can also request interest-only payments to lighten their financial load while you are in school.
Apply online or use our online request form to get a Federal PLUS loan application.
To learn more about Federal PLUS Loans, read our Loan Program Guide.
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When you take out a subsidized or unsubsidized Federal Stafford or PLUS Loan from U.S. Bank, you can reap significant savings* by making repayments on time. We've created these opportunities for savings:
1/4% Autopay. For both Federal Stafford and PLUS loan borrowers, sign-up for automatic payment from your checking or savings account and you'll receive a 1/4% rate reduction.
2% Reduction. For Federal Stafford loan borrowers, once you've made 48 consecutive on-time monthly payments, U.S. Bank will reduce the interest rate on your remaining balance by 2%.
Origination Fee Reduction. Also for Federal Stafford loan borrowers, once you've made 24 consecutive on-time monthly payments, U.S. Bank will refund the origination fee you paid, less $250. To qualify, your original loan balances must total $8,333 or more.
For example, here's how much you'll save on a $10,000 Federal Stafford loan balance:
* Additional savings offered in Utah.
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To request an application or more information from U.S. Bank, contact Student Loans, or call us toll-free at 1-800-242-1200.
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