About Student Loans

More Resources

Department of Education Servicers

For more information, contact:

TG Customer Assistance
(800) 845-6267
cust.assist@tgslc.org

Student loans are the most prevalent form of financial aid to help students and families pay for higher education.

Because student loans must be repaid, be sure to consider and pursue other types of financial aid before taking out loans including:

Scholarships
Federal grants
Federal Work-Study
State-sponsored financial aid programs
School-sponsored financial aid programs

Talk to a financial aid counselor at your school to explore all your financial aid options. Higher education may be expensive but, on the whole, is worth the investment of time, effort, and money. Research shows that higher education can increase the amount an individual earns over a lifetime.

The decision to borrow to pay for higher education is an important one that only you and your family can make. Keep in mind that any money you borrow must be repaid. A student loan is a financial obligation that will not go away until it is paid in full.

Federal student loans are offered under two government programs — the Federal Direct Loan Program (FDLP) and the Federal Perkins Loan Program. Additional nonfederal loans are available through private lending institutions. TG provides more information on the types of student loans currently available under these programs, as well as information on programs that have been discontinued:

FDLP (Direct) Loans include Federal Direct Stafford Loans (subsidized and unsubsidized), Federal Direct PLUS Loans (for parents of dependent undergraduate students, and graduate and professional students), and Federal Direct Consolidation Loans.
FFELP Loans, which, effective July 1, 2010, are no longer available, include Stafford Loans (subsidized and unsubsidized), PLUS Loans (for parents of dependent undergraduate students, and graduate and professional students), and Consolidation Loans.
FFELP purchased loans, which are student loans the Department of Education purchased from some FFELP lenders.
Federal Perkins Loans, which are available for undergraduate and graduate students with exceptional financial need; these loans have a lower interest rate than Direct Stafford Loans.
Private loans, also known as "alternative" or "nonfederal" student loans. These loans should be used only when your income, savings, and other financial aid, including federal loans, as applicable, do not meet the cost of attendance.