Learning About Loans

Direct and Federal Family Education Loans (FFEL), including Stafford Student Loans, are the major forms of federal aid. With Direct Loans, the government lends directly. Under the FFEL program, private lenders (such as credit unions) distribute funds.

Federal PLUS Loans (Parent Loan to Undergraduate Students) are 10-year fixed-rate loans. They cover the difference between the full cost of school and the financial aid received. PLUS loans are also available for graduate or professional students.

A Perkins Loan is a low-interest federal loan for both undergraduate and graduate students with exceptional financial need. The student's school is the lender; the loan is made using government funds with a share contributed by the school.

Non-federal loans include consumer and equity loans.