Very few students can even consider a college education without at least applying for one student loan, and in many cases one loan alone is not enough to cover all the costs of attending college. When applying for loans, it’s important to know about the different types and opportunities that are out there. 

Types of Federal Loans

• The Direct Federal Loans program, also known as William D. Ford Federal Direct Loan Program, is a Federal Student Aid program and one of the most affordable and trustworthy means by which to borrow money for college. The Department of Education (DOE) acts as lender for all Direct Loans, from initial approval through repayment.
• Federal Family Education Loans Program (FFELP) is a public-private partnership created by Congress in 1965 to deliver and administer guaranteed education loans for students and their parents. The FFELP provides the following types of loans education and training:

The Two Types of Stafford Loans

• Subsidized Stafford loans are available to students who demonstrate financial need. The federal government pays the interest on these loans while the student is in school, during a six-month grace period after the student leaves school, and during authorized periods of loan deferment.
• Unsubsidized Stafford loans are available to students regardless of their financial need; however, the student is responsible for all interest that accrues on the loan.

Outside aid opportunities can be found by federal work-studies, campus-based aid,

Campus-Based Aid

• Federal Supplemental Education Opportunity Grant (FSEOG)
• Federal Work Study: provides part-time jobs for undergraduate and graduates with financial need
• Federal Perkins Loan
• Administered directly by the financial aid office
• Not every eligible student receives aid
• When the money for the program is gone no more awards are given. So apply early
• Check with your institution for application deadlines

Federal Perkins Loan

• Low interest loan only 5%
• You repay the loan to your school
• Loan is made through your institution
• Undergraduates can borrow up to $5,500 for each year and graduate studies can borrow up to $8,000

Grants
Unlike student loans grants do not have to be repaid.