What are the Different Types of Student Loans?
There are many types of student loans to choose from, and it’s important to find one that is right for your particular situation. The two main types of loans are federal loans and private loans. There are three main types of federal loans: Federal Stafford Loans – These are awarded based on financial need and are regulated by the federal government. They can be obtained from a bank, credit union, or directly from the government. There are three kinds of Federal Stafford Loans to choose from: Subsidized Federal Stafford Loan – This loan is long-term and need-based, with a low-interest rate. The term “subsidized” means that the government will pay the interest on the loan while a student is in school or when the student requests a grace period or deferment. Unsubsidized Stafford Loan – This loan is long-term, non-need-based, with a low-interest rate. This type of loan is best for students who don’t qualify for other types of financial aid, or who still need more money in addition to othe
There are two types of Federal Stafford Loans – Federal Subsidized Available to undergraduate, graduate, dependent and independent students. The U.S. Department of Education pays the interest which accrues during the in school period, grace period and periods of authorized deferment. The borrower is responsible for the interest which accrues during the repayment period and any forbearance periods. Eligibility determined by the school and is based on financial need.. Federal Unsubsidized: Available to undergraduate, graduate, dependent and independent students. The borrower is responsible for the interest which accrues during the in school period, grace period and periods of authorized deferment in addition to the interest which accrues during the repayment period and any forbearance period. Repayment does not begin, for both loan types, until 6 months after the borrower leaves school, graduates or drops below half time enrollment status. Additional Types of Loans: Federal Parent PLUS:
