What Are the Different Types of Government Student Loans?
There are several different types of government student loans available for higher education. These government student loans are characterized by a lower than average interest rate. The most common government student loan is the Federal Stafford Loan. Other loans include the Parent PLUS Loan, the Graduate PLUS Loan, and the Perkins Loan. Subsidized government student loans are loans in which the government pays for interest accrued while a student is in school. Unsubsidized government student loans are loans in which the student must pay back all the interest. In the latter case, the student or parent may also have the option of deferring payments until after graduation. The requirement for obtaining government student loans is financial need. The degree of financial need dictates the type of loans available to the student.
