Students may be eligible to receive subsidized and unsubsidized loans based on their financial need. Subsidized Loans: Direct subsidized student loans are more favorable than unsubsidized student loans because the government kicks in to pay the interest during applicable periods.  The Department of Education pays the interest on a subsidized loans while: The student is in school at least half-time […]

The “FFEL” – Federal Family Education Loan Program – is federal program under which private lenders used their own funds to make federal student loans to borrowers to pay for secondary education (college).  These Loans were guaranteed by guaranty agencies that insured these funds, which were, in turn, reinsured by the federal government. The FFEL loan program was discontinued as […]

Direct Stafford Loans are student loans originated by the United States Department of Education to both undergraduate and graduate students. Stafford loans come in two types: Subsidized Stafford loan Unsubsidized Stafford loan. Subsidized Stafford Loans: Direct Subsidized Stafford Loans are more favorable than unsubsidized Stafford loans because the government kicks in to pay the interest during applicable periods.  Stafford loans […]

A federal Direct Consolidation Loan allows borrowers to combine multiple federal education loans into one singe loan. The result for the borrower is a single monthly payment made to a single loan servicer instead of multiple payments made to multiple servicers. Loan consolidation also gives borrowers access to additional loan repayment plans and forgiveness programs that might not otherwise be […]

Direct PLUS Loans are federal loans that graduate or professional students and parents of dependent undergraduate students can use to help pay for college or career school (commonly referred to as a “parent PLUS” loan when made to a parent).  PLUS loans are intended to help pay for education expenses not covered by other financial aid. The U.S. Department of […]

The Federal Perkins Loan Program provided money for undergraduate, graduate, and professional students with financial need.  Perkins Loans are low-interest federal student loans for undergraduate and graduate students with “exceptional financial need”. The Perkins Loans program ended on Sept. 30, 2017. As a result, students can no longer receive Perkins Loans. Unlike other student loans, in the case of Perkins […]

“Federal Family Education Loan Program” (“FFEL”)- is a federal program under which private lenders used their own funds to make federal student loans to borrowers to pay for secondary education (college).  These Loans were guaranteed by guaranty agencies that insured these funds, which were, in turn, reinsured by the federal government. The FFEL loan program was discontinued as of July […]

After July 1, 2010, the federal government became the direct lender of federal student loans under a program called the “William D. Ford Federal Direct Loan Program” (sometimes referred to as “Direct Loans” or “FDL”).  Before July 1, 2010, federal student loans were originated by private banks and guaranteed by the federal government. Under the Direct Loan program, the U.S. […]

Generally speaking, there are two broad categories of student loans – private student loans and federal or government student loans.  The two categories of loans have many similarities, but it is the differences between them that are crucial to borrowers. Federal student loans are funded or guaranteed federal government. Private student loans are nonfederal loans, made by a lender other […]

The U.S. Department of Education originates or guarantees four different kinds of student loans: Stafford Loans (Needs based subsidized and unsubsidized with lending limits). PLUS Loans (Requires credit application and approval, can be made to the student and/or to the parents of students, available for graduate school tuition). Perkins Loans (Needs based financial aid, must qualify, administered through the school). […]