Federal Stafford Loans are student loans that must be repaid and are available to both undergraduate and graduate students. There are two types: Federal Direct Loan (Direct Loan) and Federal Family Education Loan (FFEL).
- If it is a subsidized Stafford loan (demonstrated need for the loan), you are not responsible for interest while attending at least half-time and the principle is deferred.
- If it is an unsubsidized Stafford loan (financial need was not demonstrated) the principle is still deferred but you are responsible for paying interest on the loan.
Federal PLUS Loans are available to parents of dependent undergraduate students who are enrolled at least half-time. The PLUS Loan is also available to graduate and professional degree students. Financial need is not a requirement.
PLUS Loans are unsubsidized: the borrower is responsible for interest that accrues during the life of the loan. Borrowers can request a loan for up to the full cost of attendance minus any other financial aid.
TIP: Graduate and professional students that borrow a PLUS Loan receive an automatic deferment while in school.
Federal Perkins Loans are low-interest (5 percent) loans that must be repaid; the maximum annual loan amount is $4,000 for undergraduate students and $6,000 for graduate students.
TIP: You should be sure to find out which financial aid programs described above are available at each school you are interested in attending. Not all schools participate in all of the federal student aid programs.
