As said “all the citizens of a state cannot be equally powerful, but they may be equally free”, the same goes for student loans as well. Student loans are offered in many different scenarios and they are not identical for everyone. Based on this rationale, federal student loan program was designed to meet the requirements of typical class of students. Its vital to learn about the utility of these different category of loans which suit your needs. There are two categories of student loans which are being offered, one relates to private lenders and the other public government program. The most important Federal loan programs to consider are the Stafford Loan, the Perkins Loan, and the PLUS loans.

Stafford Loans

Highly prevalent government loan program is Stafford Loans which is being offered on both subsidized and unsubsidized level. This means you can pay for your college expenses whether you require it or not. This is available to undergraduate and graduate students as well who are enrolled on an at least half-time basis. This loan also facilitates the students in paying less interest and the same can be deferred for six months after the completion of their graduation.

Perkins Loans

Like Stafford loans, Perkins Loans are also for undergraduate and graduate students. Perkins Loans are subject to a much lower annual and lifetime limit on borrowing, but are free from origination fees. Perkins Loans also receive a significantly lower interest rate. Additionally, the interest on these loans is paid by the government while a student is still enrolled in school.

PLUS Loans

These loans are the additional amount which students or their parents can avail if their requirements are not met by the other funding. The extract is that they permit you to entirely pay for college. However, your first payment may be due as early as 60 days from the loan’s disbursement. Their interest rates are high as compared to the other facilitated loans and they also demand good credit history as well

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