Types Of Student Loans

With this day and age, debt is unavoidable. This is mainly because at one point in your life, you are likely to apply for a loan. One of the most common loans out there is student loan. Most people fear starting their adult life with a lainat but if it is the only option to get decent higher education; it is worth every single cent. Consider it more like an investment than debt and you will have an easier time dealing with your student loan.

Stafford Student Loan

These are federal loans that are issued to the student directly from the Federal Direct Student Loan Program. They come with favorable repayment options as well as very low interest rates. They also don’t require any collateral or credit check and are merged after graduation. These loans are further subdivided into two other categories namely subsidized and unsubsidized loans.

  • Subsidized Stafford Loans


You can only repay subsidized loans after you have graduated. As long as you are still in school, the government pays your interest rate. They are offered to students with financial difficulties.

  • Unsubsidized Stafford Loans

Although you can repay your loan at any given time, payments can be deferred until you graduate. All students are eligible for unsubsidized student loans and they are responsible for paying all the accrued interest.


Perkins Student Loans

They are more or less the same as Stafford loans but are more common because most student consider them lucrative. They have favorable eligibility requirements and have a fixed interest rate of 5%. What’s more, they are all subsidized meaning that as long as you are still in school, the government pays all accrued interest. Although they are funded by the government, they are disbursed by the university or college. The school has the freedom to determine which students to give the loans to.


Student loans are some of the best loans that you can ever take in your life because you are investing in your future. Find out how you can get your hands on these loans.

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