Student Loans

There are many different types of student loans. The most common are:

1. Stafford Loans

If you are going to get a Stafford loan, you should know about the two types of those. The FFEL or Direct loan programs. Your school chooses which type it awards. A FFEL loan is one in which your lender is private, like Sallie Mae or Bank One, but these loans are still federally insured.

With Direct Stafford Loans, your lender is the Department of Education. There is not much difference between these two types of loans.

2. Perkins Loans

The Perkins Loan is awarded to students with extreme financial need. The school is the lender and all Perkins Loans are subsidized, and the interest rate is fixed.

3. PLUS Loans

PLUS Loans are loans that your parents take out for your education if there is no other financial aid available. The maximum amount that your parents can get is equal to your cost of attendance minus any other aid you receive. The PLUS Loan goes into repayment 60 days after the student starts school. You can learn more about PLUS loans at
PLUS-Loan.org

4. Consolidation Loans

Consolidation Loans are available for students with more than one loan who want to have one monthly payment. The downside is that once you consolidate, the interest rate is fixed and you can not re-consolidate the loan again.

5. Alternative/Private Student Loans

Taking out student loans is borrowing money, and it is very important the you realize this before signing for the loan. Please take a look at our Borrowers Rights and Responsibilities page.