What are the most common types of eligible federal student loans?
• Stafford Loans – Federal loans for students, both undergraduate and graduate. The current interest rate on loans taken out after July 1, 2006 is fixed at 6.8%. • Subsidized – A subsidized loan is awarded on the basis of need. The federal government pays the interest on the loan until repayment begins and during authorized periods of deferment. • Unsubsidized – An unsubsidized loan is available to students who do not qualify for a Subsidized Stafford Loan or need additional aid. Students will be charged interest from the time the loan is disbursed until it is paid in full. • Perkins Loans – A campus based, low-interest subsidized loan for undergraduate and graduate students. The college or university acts as the lender using a limited pool of funds provided by the federal government and the school. The loans are awarded based on exceptional financial need and do not have origination or default fees. The current interest rate is fixed at 5%. • Parent PLUS Loans – Parent PLUS loans are
