What are the different types of federal student loans?
There are four types of federal student loans available:
- Direct subsidized loans.
- Direct unsubsidized loans.
- Direct PLUS loans.
- Direct consolidation loans.
What are 2 types of federal student loans How are they different?
There are three types of federal student loans: Direct Subsidized Loans. Direct Unsubsidized Loans. Direct PLUS Loans, of which there are two types: Grad PLUS Loans for graduate and professional students, as well as loans that can be issued to a student’s parents, also known as Parent PLUS Loans.
What is the most common type of federal student loan?
A Quick Guide to the 4 Most Common Federal Student Loans
- Perkins Loan — 5 percent fixed interest rate.
- Direct Subsidized Loan — 4.66 percent interest.
- Direct Unsubsidized Loan — 4.66 percent for undergrads, 6.21 percent for grads students or professionals.
- Direct PLUS loan — 7.21 percent.
How much money can you borrow in federal student loans as an undergraduate student?
If you are an undergraduate, the maximum amount of Direct Subsidized and Direct Unsubsidized Loans you can borrow each academic year is between $5,500 and $12,500, depending on your year in school and your dependency status (whether you are a dependent or independent student).
What kind of loans are Stafford Loans?
The federal Direct Loan program is better known as Stafford Loans. These are available to undergraduate and graduate students alike. Money for these loans comes directly from the federal government. Stafford Loans come in two types: subsidized and unsubsidized.
What are the two types of student loans?
Generally, there are two types of student loans—federal and private.
- Federal student loans and federal parent loans: These loans are funded by the federal government.
- Private student loans: These loans are nonfederal loans, made by a lender such as a bank, credit union, state agency, or a school.