Federal loans are generally the most secure, and have the lowest interest rates. Some government loans are need-based, and are offered to students based on their FAFSA information.
- Need-Based Loans
- Federal Perkins Loans are awarded by colleges to students with the highest need.
- Federal Direct Subsidized Loans have a borrowing limit that increases for each year of school you complete.
- Non-Need-Based Loans
- Federal Direct Unsubsidized Loans allow you to delay the interest fees on the amount you borrowed until after graduation. But this means you’ll actually end up owing more.
- Federal Parent PLUS Loans allow parents to borrow the total cost of college, minus any financial aid received.