Saturday, December 21, 2019

Federal student loans are the most common, preferred method used to pay for a college education.

Federal student loans are the most common, preferred method used to pay for a college education. They are offered by the U.S. Government and come with distinct advantages, but also with restrictive guidelines. There are several different types of federal loans that are available to specific types of students in certain situations.

We will give a brief rundown of each type of federal student loan below, but for now, here are the basic types:

Direct Subsidized Loans
Direct Unsubsidized Loans (undergraduate)
Direct Unsubsidized Loans (graduate)
Direct PLUS Loans
Perkins Loans

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Private student loans are far less regulated

Private student loans are far less regulated, but they often come with a much higher interest rate. They are offered by private banks and a...