Federal DIRECT LOAN
The Direct Loan is a federal loan to students awarded based on FAFSA determined financial-need. The maximum awarded per year depends on your grade level, with the option to add an additional loan amount.
No credit check is required and the Direct Loan, which typically carries the lowest interest rates available. Interest on the loan begins accruing as soon as the first of the funds are distributed to Cal Lutheran, but if you qualify for the subsidized version of the loan, the government will pay that interest while you're in school. You can decide to delay repayment of your loan until up to 6 months after leaving school.
Alternative loans are offered by third-party, private lenders. A credit check is required and they are not based on financial need. Alternative loans have fixed and variable interest rates which depend on the borrower and co-signer's credit and the loan market. You should exhaust the federal loan opportunities before turning to these Alternative loans.
The amount you may borrow will be the amount that remains from your estimated Cost of Attendance after subtracting other forms of financial aid you have accepted, such as scholarships, grants, work study and federal loans.