More than ever, students today are making it through school on Uncle Sam’s paycheck, BYU-Idaho students included. But how do student loans work? And are they a resource that students could use more?

Almost all student loans begin with the Free Application For Student Aid (FAFSA), which can be obtained for free from the Financial Aid Office, located in the Spencer W. Kimball Student and Administrative Services Building. The FAFSA helps determine whether a student qualifies for a federal grant or a student loan.

Two different loans are offered: subsidized loans (the federal government pays interest until graduation) and non-subsidized loans. Once a loan has been awarded, the student is allowed to choose the bank that will initially offer the loan.

Once the loan has been offered however, the management of the loan is turned over to the Utah Higher Education Assistance Authority. From there it’s the UHEAA that students work with while managing their loans.

Other loans geared toward students are offered through commercial banks, but Kenneth L. Jackson, the director of Student Financial Aid at BYU-I, wouldn’t recommend them.

“The UHEAA offers rates and rewards that I don’t think anyone else can beat,” Jackson said.

A typical loan may be made for 6 percent interest, but UHEAA is willing to take off one percentage point if the recipient pays with direct deposit and another two percentage points if the recipient make 48 monthly payments on time.

Many students are reluctant to take out loans. “I hope I don’t have to,” said Sharae Harrison, a sophomore from Sandy, Utah. “I try to avoid debt at all costs.” Even though Harrison doesn’t work while going to school, she still manages to make it through by being careful with her money.

“Loans aren’t bad; a student just has to be responsible,” Jackson said. “Students could try to tighten up their finances first, and only take out loans for school related expenses.” Many students’ first question when applying for a loan is, “What’s the maximum amount I can get?” Jackson said. He wishes students would be more diligent in budgeting their funds.