There are thousands of institutions that offer loans, but some of the most affordable interest rates are available through the federal government. To get your hands on these, file a Free Application for Federal Student Aid, or FAFSA. This is your ticket to qualify for many different federal loans and grants.

Regardless of which federal loan you are awarded, they come in two varieties — subsidized and unsubsidized. If your loan is subsidized, you will not be charged interest before you begin to repay it or during other approved periods known as periods of deferment. The catch? These loans are awarded on a need basis only, so you have to qualify to get one.

Unsubsidized loans, on the other hand, do not consider need — but you have to begin paying interest the minute you receive the money. You can choose to pay the interest on a monthly basis or let it accrue, which adds it onto your original loan. Once you get out of school, though, you will be charged interest based on your loan plus the accruement — for example, you’ll be paying interest on $3,000, even though your original loan was $2,000.

Even though the words “subsidized” and “unsubsidized” are used for federal loans only, the terms translate to private loans, too. With private lenders, you can choose to begin interest-only payments or defer until you’re out of school. Sound familiar?

The downside to federal loans is there’s a limit on how much money you can receive while in college. If you are still listed on your family’s income tax as a dependent, you can only receive $23,000 over the course of your collegiate career, but if you file your own taxes, you can receive twice that amount.

You Are Forgiven
The thought of debt weighing you down? If you get a certificate or diploma in certain high-demand technical fields, the state of Arkansas will help take the load off. The Arkansas Technical Careers Student Loan Forgiveness Program can give graduates up to $2,500 a year for four years toward the repayment of their student loans. In order to apply for the program, you must:

• Be a citizen or a permanent resident alien of the United States.
• Have attended and graduated from a qualified post-secondary institution in the state of Arkansas with a degree or certificate in manufacturing, computer/information technology or biomedical/biotechnology.
• Have filed the FAFSA and received a student loan while in college.
• Have filled out an “Intent to Apply” form for the program once you declared your major. Do it as soon as possible, because funds are limited.
• Work in-state in your field of study after you graduate. You must work one year, full-time, for each year of loan forgiveness you receive.

  Students can apply for loan forgiveness within six months of graduating. For application forms, a list of qualified schools and other important information, visit dwe.arkansas.gov/LoanForgiveness/atcslfp.htm.