There are several types of student loans available to you. Federal education loans are borrowed funds that must be repaid. At today's low interest rates, they're a great option for you to consider in paying for a college education.

Students who demonstrate exceptional financial need may be eligible for a federal Perkins loan. This loan has a low interest rate and is funded by participating schools — file the FAFSA and contact your school to see if you are eligible. Here are a few things to know about federal Perkins loans:

• Low interest rate: 5%
• Eligibility is based on financial need
• Awarded by the school
• Nine-month grace period

		Stafford loans Information on federal education loans for undergraduate and graduate students
		Parent PLUS loans Information on federal education loans for parents of undergraduate students
		Private student loans Information on an additional source of funding to help pay for your college education

With many lenders, a borrower's federal student loan may be sold to a secondary market or another company. At Southwest, however, all of your loans will be owned and serviced right here throughout the life of the loan. We do not sell any of the loans we originate, and this keeps our borrowers from potentially having to make multiple payments to multiple lenders.