Types of Student Loans
Federal Student Loans
There are three types of Federal Student Loans: Stafford (Subsidized and Unsubsidized), Parent PLUS, and Perkins.
Subsidized Stafford loans are awarded on the basis of financial need. The federal government pays the interest on the loan until you begin repayment. Repayment begins after a six-month grace period (after you graduate, leave school, or cease being enrolled as at least a half-time student).
Unsubsidized Stafford loans are awarded without regard to financial need. Interest will accrue from the time the loan is disbursed until it is paid in full. Repayment begins after a six-month grace period (after you graduate, leave school, or cease being enrolled as at least a half-time student).
Parent PLUS loans are credit-based loans for parents of dependent undergraduate students. Parents may apply for these loans and, if approved, may use the funds to offset educational expenses. Repayment generally begins 60 days after the second disbursement.
Federal Perkins loans are awarded to students with exceptional financial need. Interest is low (5 percent) and repayment begins after a nine-month grace period (after you graduate, leave school, or cease being enrolled as at least a half-time student).
Other Loan Options
Alternative loans are private,
credit-based loans. Students may apply for these loans and, if
approved, may use the funds to offset educational expenses. They
are designed to help supplement Federal loans for educational
costs.
