Loans

Unlike grants and scholarships, loans accrue interest and must be repaid either while attending school, after graduation, or if you withdraw. Different types of student loans include federal, state, institutional, and alternative (bank) loans. Each type may have different terms and conditions associated when borrowing money for educational purposes.

Federal Direct Student Loans

Federal Direct Student Loans are available through the William D. Ford Federal Direct Student Loan Program. All students who complete the FAFSA and are eligible to receive Federal Student Aid may receive the Federal Direct Student Loans. This loan may be Subsidized or Unsubsidized. Student eligibility is determined by cost of attendance and FAFSA results. Students must enroll at least half time (6 hours for undergraduate students or 4 hours for graduate students) to receive Federal Student Loans.

Federal Direct Parent Loan for Undergraduate Students

Federal Direct PLUS Loans: Loans that parents can borrow for students to use to meet their cost of education. Eligibility for PLUS Loans are limited to cost of attendance minus other financial aid. Applicants must complete a Parent PLUS Loan Information Sheet. PLUS loan applicants are submitted for credit review. Applicants with adverse credit history will be denied. These applications are available in the Financial Aid Office or can be submitted online, for more information to apply on-line.

Types of Federal Student Loans

Direct Subsidized Loans

Are for students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time (6 credit hours), during the grace period and during deferment periods. The student must submit their acceptance of the loan offered via their award letter or by signing a Direct Loan Request Form.

Direct Subsidized	Direct Unsubsidized	Direct PLUS Loans
Are for students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time (6 credit hours), during the grace period and during deferment periods. The student must submit their acceptance of the loan offered via their award letter or by signing a Direct Loan Request Form.	Are not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods. The student must be enrolled at least part time (6 credit hours) and submit their acceptance of the loan offered via their award letter or by signing a Direct Loan Request Form.	Are unsubsidized loans for the parents of dependent 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.

Additional Loans

Nurse Education Assistance Loan Program (NEALP)

The Nurse Education Assistance Loan Program (NEALP) was created by the Ohio General Assembly in 1990. The purpose of NEALP is to assist the state in meeting nursing shortages by providing financial assistance to Ohio students enrolled for at least half-time study (or accepted for enrollment) in approved Ohio pre-licensure nurse education program who intend to serve as nurses after graduation. NEALP provides up to $3,000 per year. In exchange, to qualify for loan cancellation, recipients must be employed full-time as a registered nurse or licensed practical nurse in the State of Ohio for a minimum of five years after graduation.

NEALP Awarding

Applicants will be awarded NEALP funding based on information received from the applicant’s institution, FAFSA data, and information from the NEALP application. Applicants are ranked based on FAFSA data; those that demonstrate the highest level of need are awarded first. Awarding continues from the next neediest student until funds are depleted for the year. If sufficient funds are available, as determined by the Ohio Board of Regents, loan assistance will be awarded to all eligible applicants.

NEALP Eligibility

Be an Ohio resident.
Be a U.S. citizen or a permanent resident.
Be enrolled in or be accepted for enrollment approved nurse education programs in Ohio colleges, universities, hospitals, or vocational schools.
Not be in default or owe a refund to any Federal Financial Aid program.
Maintain an academic record which places the student in good academic standings within the institution.

NEALP Deadline

Students may apply after January 1 and before July 15th of each year. Notification of acceptance or denial for NEALP funding will be sent by the first week in September.

More Information

Alternative Student Loans

When Federal Student Loans fall short of covering the full cost of attendance, students and parents have the option to apply for Alternative Student Loans. Alternative student loans may also be used in place of federal student loans should they better suited for you, from a financial standpoint. These loans, offered by private lenders such as banks and credit unions, can bridge the financial gap left by federal aid. Alternative student loans often come with varying interest rates, repayment terms, and eligibility requirements compared to federal loans. They may also require a credit check or a co-signer for approval. While they can provide additional funding for educational expenses, it's crucial for borrowers to carefully consider the terms and conditions before committing to ensure they make informed financial decisions. Please keep in mind, that any federal and or alternative student loans must be repaid in accordance with the terms of the loans that you choose to accept.

FastChoice - Private Lending for Higher Education

In accordance with 34 CFR 668.14(b)(29)(ii), an institution must, upon the request of the applicant, discuss the availability of Federal, State, and institutional financial aid. Staff members in Rio Grande’s Office of Financial Aid are happy to discuss with students and prospective students, and their parents, the financial aid options available to them. Students and parents may qualify for loans or other assistance under Title IV of the Higher Education Act programs. The terms and conditions of Federal loan programs may be more favorable than the provisions of private educational loans.