Student loans are borrowed money that must be repaid, with interest, just like car loans and mortgages. The more you borrow, the higher your monthly payments will be after you finish your degree or certificate. You will have to repay your student loans even if you do not finish your program or graduate.

Education loans from different sources have varying terms (e.g., interest rates, repayment plans, fees and credit worthiness requirements). For example, federal Stafford loans have no credit worthiness or cosigner requirements, and the interest rates are generally lower than for other types of loans, whereas a Parent Loan for Undergraduate Students (PLUS) requires good credit and has a higher interest rate. Private educational loans, also known as “alternative” loans, also require good credit and have even higher interest rates.

Community college costs are generally much lower than those at universities. Even though you may need additional help from student loans to pay for your costs at DCCCD, you should always borrow conservatively. Student loan programs have aggregate limits (total amounts for your college career) that you can borrow. If you borrow too much at the community college level, you may run out of eligibility to borrow before you can complete a higher-level degree.