Student loans help students to pay for educational expenses, such as books, tuition and housing. There are different types of student loans which can be classified as either federal or private. In addition, student loans can be subsidized or unsubsidized.
Alternative Loans
Alternative loans are private student loans, versus federal loans, that students obtain based on credit. Alternative student loans supplement other financial aid.
Federal Perkins Loans
Federal Perkins Loans are need-based student loans, with low interest that is due after graduation, disenrollment from school or when a student's enrollment falls below half-time status.
Parent PLUS Loans
Parents take out these credit-based student loans to offset educational expenses for their dependent student. Parent PLUS student loans are typically due 60 days after the second disbursement of the loan.
Subsidized Stafford Loans
Subsidized Stafford Loans are need-based student loans in which the federal government pays the interest until a student graduates, drops below half time status or becomes otherwise disenrolled from school.
Unsubsidized Stafford Loans
Unsubsidized Stafford Loans are not based on financial need and the federal government does not pay the interest on these loans. Interest accrues once the loan has been disbursed and continues to accrue until the loan is paid off.
Tags: student loans, Stafford Loans, educational expenses, federal government, Federal Perkins