No Need to Be Confused by Student Loans. The Answers are Right Here.
So what have you heard? That the federal government has taken over all student loans? That there is little money available for college? Essentially, neither of those is true. Now, there WAS a significant change in the PROCESSING of federal student loans in 2010, but it has no impact on the amount of money available to students and it has had little impact on the student’s or parent’s experience in getting that money.
Federal Student Loan Programs:
- Stafford Loan
- Perkins Loan
- PLUS (Parent Loan for Undergraduate Student) Loan
Stafford Loan
Federal Stafford loans are fixed-rate student loans for undergraduate and graduate students attending college at least half-time. Stafford loans are the most common student loan used to pay for school.
Perkins Loan
A Federal Perkins Loan is a low-interest Federal student loan for both undergraduate and graduate students with exceptional financial need. Unlike the Federal Stafford loan and Parent PLUS loan, the Federal Perkins Loans is made through a school's financial aid office. Your school is your lender, and the loan is made with government funds. You must repay this loan to your school.
PLUS (Parent Loan for Undergraduate Student) Loan
The Federal Parent PLUS Loans provide affordable financing to parents and guardians with good credit to cover educational expenses. Parent PLUS Loan funds can be used for tuition, supplies, housing, and more.
Private Student Loan Market
These changes have had no impact on the virtually limitless private student loan market. When you have exhausted all the other forms of available funds, private student loans will always be there to pick up the slack. These loans are credit based loans, and a student will often need a credit-worthy co-signer.