What are Title IV Loans?
There are a lot of different types of student loans out there, so sorting through all of them can be tough, especially when there can be many names for the same thing. You might be surprised to find that Title IV loans and federal loans are one in the same! However, the term Title IV is applied to more than simply loans. Keep reading to learn more.
Title IV funding is all of the financial aid offered through the government; this includes loans, grants and work-study money. In order to provide Title IV aid, a school must be Title IV certified, which is a tough process. Title IV certification ensures that a college is accredited and meets certain higher education standards. This can include public, private, and for-profit schools who meet accreditation standards. Accreditation is an important factor when deciding on a school, as it can possibly affect a students ability to find a job after graduation. Employers look for the most qualified candidates, and graduating from a non-accredited school could make a degree seem worth less that one from an accredited college. The Department of Education requires that all schools participating in Title IV programs submit data to the IPEDS database of accredited schools. To see if your school is a qualifying institution, visit the IPEDS database.
Title IV loans are any loan offered through the government. This includes Perkins loans, Direct Stafford Loans, Parent PLUS Loans, and Grad PLUS Loans. To apply for all title IV loans, you will need toplete the FAFSA. Once you submit your FAFSA, your school will send you a letter which details all of the aid you are eligible for through the government. Like all federal aid, these loans are limited to students who are US citizens or eligible non-citizens who possess a social security number.
What does all this mean for you? Well, Federal loans require students to be enrolled at least half-time at an accredited, Title IV school. Not every school participates in the federal student loan program for a variety of reasons, but schools may participate in private student loan programs as an alternative. Students attending non-Title IV schools can still pay for their education using private student loans!
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