Your question: What are the basic types of student loans offered?

What are the basic types of student loans?

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 are the four types of student loans?

There are four types of federal student loans available:

  • Direct subsidized loans.
  • Direct unsubsidized loans.
  • Direct PLUS loans.
  • Direct consolidation loans.

What is the most common type of student loan?

Direct Subsidized and Direct Unsubsidized Loans (also known as Stafford Loans) are the most common type of federal student loans for undergrad and graduate students. Direct PLUS Loans (also known as Grad PLUS and Parent PLUS) have higher interest rates and disbursement fees than Stafford Loans.

What are the 3 main types of student aid?

For federal financial aid, there are three types of funds: loans, grants and work-study. Federal student loans.

What are need based loans?

Need-based: Aid that is need-based is awarded to students who are determined to have financial need; that is, the amount they are able to pay for college is less than the cost of attending the college. The federal government offers need-based loans to students.

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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.

What are the 4 types of direct loans?

There are four types of Direct Loans:

  • Direct Subsidized Loans.
  • Direct Unsubsidized Loans.
  • Direct PLUS Loans.
  • Direct Consolidation Loans.

What are student loans for college?

Direct PLUS Loans are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required.

What are three sources of private student loans?

Finally, choosing wisely among your private loan options can help you minimize your overall student loan debt.

  • Bank-Based Private Loans. …
  • Credit Unions. …
  • Peer-to-Peer Lending. …
  • State Agencies and Other Sources.

Which student loan type offers the most benefits to students and what are they?

Federal student loans are one of the best options for borrowing to attend school. They not only offer low fixed interest rates but also provide maximum flexibility in repayment options.