Types of Student Loans
1. The FWS (Federal Work-Study), FSEOG (Federal Supplemental Education Opportunity Grant), and Federal Perkins Loan are government-funded programs and supplied to students having the great economic need. Separate colleges manage all or some of these programs. Filing deadlines are much earlier than for the FAFSA.
2. A subsidized Stafford loan is low-interest and needs-based loan when the federal government covers the annual interest when students are still in school. They are lack of loan origination fee.
3. An unsubsidized Stafford loan is not based on fiscal need. Students are accountable for rate of interest accruing while entered in school. They are lack of origination fee.
4. Banks and some other financial institutions provide private student loans. They are not subsidized or guaranteed by the government and usually carry higher rates of interest than government loans, though you may borrow much greater amounts. Rates and details vary widely.
5. A college-sponsored loan is provided by some colleges. Rates of interest may be much lower than a federal student loan. Check every college’s aid materials in order to see whether they are accessible.
6. Federal Parent Loan for Undergraduate Students (PLUS) loans permit parents to borrow for their kids’ college costs. Rates of interest are fixed –though much higher than a student loan – and there is also a loan origination fee.