Types Of Student Loans

This can be divided into 3 different categories which are

1. Stafford Loan [Subsidized and Unsubsidized]
2. Federal Plus Loans and
3. Federal Perkin Loans

1. Stafford Loans [Subsidized]:
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.

Stafford Loans [UnSubsidized]:
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 other forms of financial aid.

2.Federal Plus Loans:
These loans are available to parents whose children are attending college as full or half-time undergraduate students. They are awarded based on credit history and cost of attendance. The interest is low on this type of loan, but repayment usually begins within 60-90 days after full disbursement of the loan, or after the student graduates.

3. Federal Perkin Loans:
Perkins loans are awarded to students based on extreme financial need, and usually have very low interest rate. The total funds available to be disbursed for these loans is limited, however, which means that the amount of the loan will likely be relatively low. The interest doesn't start to accrue until 9 months after a student drops below half-time enrollment or graduates. If you're not sure if you qualify for a Perkins Loan, ask a college financial aid advisor.