The Ins And Outs Of Federal Student Loans

As a college student in the world today you will find that the world of student loans is becoming more and more increasing difficult to understand.  There are many different types of loans and the repayment plans and deferment programs can be even more difficult to understand than the loan itself.  This article will help to explain the different types of loans available and what is involved when paying them back.


Types Of Federal Student Loans

When looking into government student loans you will find that there are three different types.  These are known as the Stafford loan, the PLUS loan and the Perkins loan.  There are two different types of Stafford loans.  There is subsidized and unsubsidized loans.  A subsidized Stafford loan is a loan that you are not charge any amount of interest while you are going to school.  The requirement is that you be enrolled in school for at least half of the time.  The loan is not available to everyone and the school will make the decision on how much you can borrow.  The unsubsidized Stafford loan is for those students who do not qualify for subsidized loans but still need assistance to help pay their schooling expenses.

The payments for the Stafford types of loans usually do not need to be made until after graduation however it might be a wise decision to start making payments on at least the interest portion of the loan.  That way you are not too far behind when the payments start.

A second type of federal student loan is the Federal PLUS loan.  This is a government loan that is meant to help parents of a college student who they still claim as a dependent.  In this situation the parent is actually borrowing on behalf of the student.  This will help to pay for tuition, books, room and board as well as other expenses that qualify.  This is a low interest loan that requires the interest be paid back monthly by the borrower but the good news is that the interest is tax deductible.  Of course because the interest is already being paid back it will make it easier for the loan to be paid in full once the student starts to make the payments on the loan after graduation.

The Perkins loan is the most popular of the federal student loans.  The qualification for this loan is that the student should be enrolled in an accredited college or university and they should be in the first undergraduate or a graduate program.  The other qualification is that there must be financial need.  The application forms for this loan can be found in your student financial aid office at the school.  This loan comes with a very low interest rate and the loan should be repaid to the government upon graduation or no longer attending the college or university.


These are many different financial institutions that also work with student loans however the federal student loans are usually the best with the interest rates and repayment plans available.  The school’s financial aid office should be able to help you with any questions you may have as well as help with completing the loan applications you can click here.


Student loans is one of biggest commitment for people who have studies. We need to

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.