How to Pay for College 2024-2025

TIPS FOR CHOOSING STUDENT LOANS

Student loans can be confusing and complicated. The following information is intended to provide helpful information while understanding that every person’s situation is different. There is not a one-size-fits-all solution when it comes to student loans. Ask questions and research your options. Which student loans should I choose as an undergraduate student? Federal Direct Subsidized & Unsubsidized Loans are typically the best options for an undergraduate. These loans will most likely be included in your Financial Aid Offer that you receive from your chosen school. These loans are usually the best loan choice for undergraduates due to flexible repayment plans and the possible chance of loan forgiveness from the federal government. What if more money is needed?

Arkansas Student Loan Author ity

If more loans are needed, the best option may be either a Federal Parent PLUS Loan or a Private Student Loan. For the 2024-25 academic year, we encourage families to thoughtfully consider an Arkansas Education Loan through the Arkansas Student Loan Authority. Here is a comparison to help with your decision.

Federal Direct PLUS Loan for Parents

Arkansas Education Loans

Interest Rates from 2.95% to 6.55% APR’s

Interest Rate: 9.08%

No Origination Fee

Origination Fee: 4.23%

Various Repayment Options

Various Repayment Options

Deferments available

Deferments available

Forgiveness only in unique circumstances

Eligible for Public Service Loan Forgiveness & possibly other forgiveness programs

Approval based on Credit History

Approval based on Credit History

This information should be considered a general recommendation for the average student. You are encouraged to do your own research. We don’t encourage you to borrow but we encourage you to make wise choices when borrowing is necessary! For student loan and general financial aid counseling, please contact ASLA at 800-443-6030.

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