Editor’s note: This is the first in a three-part series examining financial aid opportunities at NIU. Today’s article looks at low-interest loans.

Paying for college has never been easy, but those aware of financial aid opportunities available at NIU might be able to relieve some financial stress.

The major forms of financial aid include loans, grants and work-study employment. Cheryl Shaffer, NIU Financial Aid Office assistant director, said there are two major federal loans available, Stafford Loans and Perkins Loans.

Stafford Loans are available to students who are citizens or legal residents of the U.S. and can demonstrate “financial need,” Shaffer said.

“The definition of financial need varies from year to year,” Shaffer said. “Basically, we follow the guidelines set out for us by the federal government in the Simplified Needs Analysis requirements.”

Shaffer said qualifications for aid depend on a number of variables, including the number of dependents in college, income earned over the summer and total family income.

If qualified, an undergraduate can receive up to $2,265 a year during their freshman and sophomore years, and up to $4,000 per year during junior and senior years, according to The Student Guide to Financial Aid, available at NIU’s aid office. Stafford Loans also are available to graduate students.

According to the guide, Stafford Loans have a 7 to 9 percent interest rate, depending on when a student first received the loan. No interest is charged while the student is in college and repayment begins five months after graduation or leaving school, it states.

Perkins Loans are another federal loan option. Perkins Loans have a 5 percent interest rate, but have stricter income guideline restrictions than Stafford Loans, Shaffer said.

In fiscal year 1988, almost 5,500 Stafford Loans were issued at NIU and averaged about $2,200 per loan, Shaffer said. There were about 1,500 Perkins Loans issued at NIU that averaged more than $700 per loan, Shaffer said.

“NIU has traditionally had an excellent repayment rate,” Financial Aid Director Jerry Augsberger said. “Our default rate has seldom gone over 3 percent.”

Although thousands of NIU students receive aid each year, not everyone is happy with the loan program.

Sarah, a junior pre-med psychology major, said, “It takes a long time for your application to be approved. Even if you get everything in on time it will be months before you hear from them. If they have a question about your application or need more information, it will take even longer. A lot of times that means that you don’t have the money at registration time.”

However, “I think it’s well worth the time it takes to fill out the applications,” Shaffer said.”

Tomorrow: receiving money through grants.