About Student Loans

For more information, contact:

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

Borrowing to pay for your education is an important decision that only you and your family can make. Higher education is expensive but worth the investment of time, effort, and money. Research shows that higher education can increase what an individual earns over a lifetime.

Keep in mind that any money you borrow will have to be paid back. A student loan is a financial obligation that won't go away until it is paid in full.

Here is what you need to know to decide if a federal student loan is for you.

The Federal Family Education Loan Program (FFELP)

Student loans are the primary source of financial aid in the U.S. As one of the student loan programs, the FFELP provides not only the funding necessary to access higher education, but also a long history of dedication to customer service, borrower advocacy, financial literacy, default management, and outreach programs.

Federal Stafford loans and Federal PLUS loans are a good deal if you decide to borrow to pay for your education.

Loans offered through the FFELP have several advantages, including the following:

Interest rates are low
Application and approval processes are easy
Loans are available to both students and parents
A student is not required to make payments on a Stafford or Grad PLUS loan while enrolled in school on at least a half-time basis; in addition:
- A Stafford loan borrower is not required to make payments for the 6-month period after he or she drops below half time
- For a Grad PLUS loan first disbursed on or after July 1, 2008, the Grad PLUS loan borrower can defer payments for the 6-month period after he or she drops below half time
A parent can defer payments on a PLUS loan while enrolled in school on at least a half-time basis; in addition, for a PLUS loan first disbursed on or after July 1, 2008, a parent, upon his or her request, can defer payments on a PLUS loan:
- For the 6-month period after the parent drops below half time
- While the student for whom the parent borrowed is enrolled at least half time and for the 6-month period after the student drops below half time

How it works

Students and parents receive loans from banks, credit unions, and other lending institutions. The federal government backs the loans and pays interest on some loans while the student is still in school on at least a half-time basis.

TG helps families, students, schools, and lenders by providing financial aid information and services. TG also helps the government manage the FFELP as a public nonprofit guarantor, or insurer, of loans.

Explore your options

Remember that student loans are just one way families and students can cover education-related expenses. Be sure to consider other types of aid before taking out loans:

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

Talk to a financial aid counselor at the school of your choice to explore all of your options.