Stafford Loans are more common than Perkins Loans, the other type of federal student loans. Money for these loans comes directly from the federal government in a program called the Federal Direct Student Loan Program.There are two types of Stafford Loans: subsidized and unsubsidized. The type helps determine your interest rate and maximum loan amount.If your loan is subsidized, you won’t be responsible for making any payments until after you graduate. Your interest rate typically should be at or below 6.8 percent. Usually for students with financial hardship. The government pays your interest for you while you’re in school.If you have an unsubsidized loan, you’re responsible for paying off all the interest. Interest builds up at a fixed rate of 6.8 percent while you’re in school, but payments are typically postponed until after you graduate. All students are eligible for this type of loan.
Perkins Loans have a fixed interest rate of 5 percent. They are all subsidized, so the government pays any interest made while you’re in school and for a short period after you graduate. Because of their favorable terms, Perkins Loans are reserved for students who show big financial need.
PLUS loans are available for both parents and graduate students. Parent PLUS loans are for parents of dependent undergraduate students, and Grad PLUS loans are for graduate students themselves.As with other education loans, PLUS loans are funded directly by the federal government. But unlike traditional student loans, they have no maximum amounts and can be used to cover any education costs not covered by other financial aid. They have a fixed interest rate of 7.9 percent. Your direct PLUS loan enters repayment once the full loan is distributed. However, if you are a graduate or professional student, your loan will be postponed while you are enrolled at least half-time and for an additional six months after you cease to be enrolled at least half-time.
Part 2: My work shall appear in pictures:
Part 1: Perkins Loans have a fixed interest rate of 5 percent. They are all subsidized, so the government pays any interest made while you’re in school and for a short period after you graduate. Because of their favorable terms, Perkins Loans are reserved for students who show big financial need.
PLUS loans are available for both parents and graduate students. Parent PLUS loans are for parents of dependent undergraduate students, and Grad PLUS loans are for graduate students themselves.As with other education loans, PLUS loans are funded directly by the federal government. But unlike traditional student loans, they have no maximum amounts and can be used to cover any education costs not covered by other financial aid. They have a fixed interest rate of 7.9 percent. Your direct PLUS loan enters repayment once the full loan is distributed. However, if you are a graduate or professional student, your loan will be postponed while you are enrolled at least half-time and for an additional six months after you cease to be enrolled at least half-time.
Part 2: My work shall appear in pictures:
http://www.debt.org/students/types-of-loans/
studentaid.ed.gov
http://www.wiu.edu/vpas/business_services/loancalc.php
studentaid.ed.gov
http://www.wiu.edu/vpas/business_services/loancalc.php