COMMON STUDENT LOANS

STAFFORD – This is the primary federal loan for students. Students can get them either direct from the government (through "direct lending schools") or from private lenders such as banks and credit unions.

SUBSIDIZED VS. UNSUBSIDIZED –Students who demonstrate financial need can get subsidized Stafford loans, in which the government pays the interest on the loan while they're in school. Otherwise, Stafford loans accrue interest while students are in school.

PERKINS – This is a federal loan for undergraduate and graduate students with exceptional financial need. The school acts as the lender, tapping a pool of funds provided by the federal government. The interest rate is lower than with Stafford loans and the government pays the interest while the student is in school.

PLUS – Parents can take out federal loans to supplement children's aid packages. As with Stafford loans, PLUS loans can be either direct loans or through a private lender. PLUS loans are the responsibility of the parent, not the student. Graduate and professional students can also take out PLUS loans.

PRIVATE –Loans from banks, credit unions and other private lenders typically come with significantly higher interest rates than federal loans. Eligibility and loan terms depend on your credit score.

Source: FinAid.org