Types of Student Loans

Infographic on Student Loans. See Description in blog post.

If you have to borrow money for college, try to follow the Rule of Thirds for college costs:

1/3 or more should be covered by parent & student savings

1/3 or more should be covered by grants & scholarships

1/3 or less should be covered by student loans    

Types of Student Loans

Private Loans: Usually have higher variable interest rates, less flexibility in repayment if you are having a financial hardship, typically you can borrow larger amounts.

Federal Loans: Usually have lower fixed interest rates, some have subsidized interest most students are eligible, repayment is flexible, and the amount you can borrow is limited.

-Perkins Loans: Subsidized, administered through school, based on financial need

-Direct Subsidized Loan: Subsidized, based on financial need

-Direct Unsubsidized Loan: Unsubsidized, available to everyone.

-PLUS Loans: Unsubsidized, for parents of undergraduates or graduate students.