With the cost of college constantly rising, many students need financing beyond scholarships and cash to pay for their education. For students like Rachel Coleman, a junior majoring in telecommunications and film, student loans are a solution.

“Student loans have been a great way for me to get through college without stressing about money,” Coleman said.

Coleman has unsubsidized federal loans, which means that the Department of Education funds the loan. The loan started accruing interest at the time she accepted the loan offer.

Cassandra Coleman, a graduate student, has both unsubsidized and subsidized federal loans, and said she recommends that students be knowledgeable about their loans.

“Know the difference between subsidized and unsubsidized loans and be very aware of interest rates. They can kill,” Cassandra Coleman said.

Students can learn about this difference and other important parts of the loan application process in the Student Financial Office in the Student Services Center.

“We have a resource center available for students to come and fill out the FASFA,” said Helen Allen, associate director of Student Financial Aid. “Counselors are available to see students at any time.”

The Free Application for Federal Student Aid Allen mentioned must be completed in order for students to receive federal financial aid.

Rachel Coleman and Cassandra Coleman both said the process is simple and easy to understand.

“It is very easy to do online,” Cassandra Coleman said. “You only need to renew FASFA info once a year.”

Allen said FASFA is an important step to financing education because it is an application for more than just loans.

“When you submit the FASFA you are applying for all federal money, including grants, at the same time,” Allen said.

The FASFA is not only for those with high demonstrated financial need, but for every student looking for financing options.

“All students are eligible to receive federal loans,” Allen said. “Federal student loans are guaranteed funds.”

Where financial need does come into play is in determining if the loan is subsidized or unsubsidized. Subsidized loans are only awarded to those students with high financial need because they do not accrue interest until after the student’s graduation. Unsubsidized loans, which start accruing interest immediately upon acceptance of the loan offer, are guaranteed to any student that filled out the FASFA.

The total amount of the loan offered depends on class standing. The amount rises from $5,550 freshman year to $6,500 sophomore year to $7,500 junior and senior year on the premise that the further along a student is in school, the more likely the student is to graduate and repay their debt.

While federal student loans do not require that students make a payment on their loans until six months after graduation, there is an advantage to paying on unsubsidized loans. Allen said that because the interest on these loans accumulates, paying off interest while in school leaves students with lower overall costs.

Students like Rachel Coleman, however, choose to wait and make payments until they have a stable income.

“I’m holding off on loan payments until I have a job,” Rachel Coleman said. “I will be able to pay them in a much more manageable way then.”