Federal student loans

Description

Federal student loans

Federal student loans are loans made or guaranteed by the Department of Education. Types of federal student loans include:

• Direct Subsidized and Unsubsidized student loans: These loans, also known as Stafford loans,  are a type of federal student loan that are either subsidized—the government pays the interest while you’re in school—or unsubsidized—you pay all the interest from the time you get the loan.
• PLUS loans: There are two types of PLUS loans: the Parent PLUS loan, available to parents of undergraduate students, and the Grad PLUS loan, which is available to students pursuing graduate degrees. All PLUS loans have a fixed interest rate and are not subsidized.
• Perkins loans: A Perkins loan is a type of federal student loan based on financial need. Perkins loans are available to undergraduate students. A Perkins loan is a subsidized loan, meaning that the federal government pays the loan’s interest while you are in school.

Learn more about the differences between federal student loans and private student loans.