Part 1
~Unsubsidized Stafford Loans 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 deferred — or postponed — until after you graduate. All students are eligible for this type of loan.
Part 2
- Stafford Loans: 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 (FDSLP).
~Unsubsidized Stafford Loans 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 deferred — or postponed — until after you graduate. All students are eligible for this type of loan.
- Perkins LoansPerkins Loans are more desirable than Stafford Loans and have more stringent eligibility rules.
- PLUS Loans: 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.
Part 2