Knowing the terms and obligations of your student loan(s) makes managing it easier and may save you money over the life of the loan(s). We have information about student loan types, plus links to additional resources.
Find information about your loan(s)
Not sure what type(s) of loan(s) you have? You have options. Go to the Federal Student Aid (FSA) website, which is the central database for all federal student loan information. You can also visit the U.S. Department of Education's Federal Student Aid website for details about student loan types.
Federal Direct and FFELP loans
The federal government funds federal student loans. If you took out a loan(s) before July 1, 2010, depending on your college's choice for participation in either the Direct Loan Program or the Federal Family Education Loan Program (FFELP), you may also have a loan(s) through a lender.
Federal Stafford Loan Program
College students attending an eligible, participating school at least half-time may qualify for Stafford loans. Stafford loans can be subsidized or unsubsidized and as of July 1, 2010, all originate from the Direct Loan Program. Most federal student loans are Stafford loans.
Subsidized versus unsubsidized federal loans
Federal Stafford loans come in two types: subsidized and unsubsidized. The federal government pays the interest on subsidized loans while you're in school and during your grace period, or if you are in deferment. For Stafford loans taken out between July 1, 2012 and July 1, 2014, the federal government did not pay the interest during the grace period. The federal government does not pay interest on unsubsidized loans and interest begins to accrue when the loans are disbursed.
Subsidized Stafford Loans
- The federal government pays the interest while you're in school.
- The federal government also pays the interest for authorized periods of deferment. One example of how you can defer your loan(s) is if you return to school at least half-time.
- The government makes interest payments for other deferments as well. See our Postpone payments section for more information.
Unsubsidized Stafford Loans
- The federal government does not make interest payments on your loan(s).
- You must pay any interest that accrues on your loan(s).
- You pay interest during any deferment period.
If you don't make interest payments while you're in school, in your grace period or in deferment, the interest that accrues during those times is typically added to the principal balance (known as capitalized interest). Capitalized interest can significantly increase your loan balance.
To avoid capitalized interest, you can make interest payments when you are in school, during your grace period or while you're in deferment. To find out how much you can save, use our Value of making interest payments calculator.
Federal PLUS and Grad PLUS Loan Programs
PLUS loans allow parents to borrow money to pay for their dependent children's undergraduate education. In addition, graduate and professional degree students may obtain Grad PLUS loans to help pay for their own education.
Direct Consolidation Loan Program
You can combine one or more federal student loans into a single, consolidated loan with one monthly payment. However, consolidation extends the term of repayment, which can lead to higher costs over the life of the loan. It is worth considering loan consolidation carefully before deciding if it works for you. See our Consolidation section for more information.
Federal Perkins Loan Program
Perkins loans are need-based, fixed-rate loans available to students with exceptional financial need. Perkins loans are typically made by your college using a combination of their own funds and federal dollars. Perkins loans have no origination fees, a longer grace period than Stafford loans and are repaid to the school.
Private student loans
Private loans are non-federal loans issued by a lender. To find out more about your private loans, consult your promissory note or contact your lender(s) for details.
State student loans
You may also have student loan(s) provided by your state. State program student loans are non-federal loans managed by each state. To find out more about your state program student loans, consult the promissory note and contact the state entity that services the loan(s).
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