What are the Different Types of College Loans?
Many students require financial assistance to attend college, but not everyone qualifies for scholarships and grants. Luckily, there are many types of college loans available, with options for every student. Some college loans are based on financial need, some are government loans available to all, some require a good credit history and can be acquired through private lending sources, and some are available specifically for parents of college students. The most common types of loans are: Stafford Loans Stafford Loans are either Federal Family Education Loans (FFELs) or William D. Ford Federal Direct Loans (Direct Loans). College loans in the Stafford family are for students. Direct Loans are funded by the government and FFELs are funded by banks and other private lenders. The choice of FFEL or Direct is up to the school, not the student. However, both programs are virtually identical as far as eligibility and amounts available, but the repayment terms may differ. Stafford Loans are off
