The Federal Family Education Loan Program (FFELP) provides several types of student loans which students may borrow to help pay educational expenses, and then repay under various repayment options depending upon the type(s) of loans obtained.

1. The Federal Stafford Loan (FSL), formerly the "Stafford Loan" and "Guaranteed Student Loan," allows students to borrow up to $2,625 their first full academic year in college at a variable interest rate which is capped at 8.25%. There are two types of FSL's:


? Subsidized Federal Stafford Loan - Payments and interest are deferred until six months after the student ceases to be a half-time student or leaves school. The loan is need based.


? Unsubsidized Federal Stafford Loan (Independent students only) - Interest begins immediately; however, students may elect not to pay the interest but rather, have it accrue and capitalize. Payments begin six months after the student ceases to be a half-time student or leaves school. This loan is NOT need based.


2. The Federal Plus Loan allows parents to borrow to assist their undergraduate children in paying educational expenses. Interest is variable but capped at 9%. Payments on both the principle and interest begin when the loan is disbursed. Parents may borrow up to the cost of the student's attendance, less any other financial aid received. Federal Plus Loans are subject to a credit check.


3. Direct Loan Program - As an approved school through the U.S. Department of Education, Miller-Motte Technical College can provide all three types of student loans (Subsidized Stafford, Unsubsidized Stafford, and PLUS loans) directly through the Department of Education without using a lending institution. This option is available to any student, even if the student's prior loans were processed under the FFELP Loan Program. The terms of all three loans are exactly the same. The Direct Loans offer a variety of repayment options which are more flexible in meeting the student's needs.