What are the Different Types of Student Loans?

by DeLadurantey Law Office, LLC on May 1, 2014

PlanBuildingBlocks_220x222If you are applying for student loans to fund your college education, it is important to understand the different types of loans that are available to you. We can review your individual circumstances and help you understand the pros and cons of the different types of student loans. It is important to educate yourself before you make such an important decision about your financial future.

There are federal and private student loans. Examples of the different types include:

  • Stafford loans. The most common form of federal education loans is the Stafford loan. This type of loan can be either subsidized or unsubsidized. The federal government pays the interest on subsidized loans during periods of authorized deferment, which means they are more beneficial for students.
  • Perkins loans. A Perkins loan is a low-interest federal loan created to assist needy students with the expense of postsecondary education. This type of loan is administered by your school.
  • PLUS loans. PLUS loans are available to graduates and parents of dependent undergraduate students that can be used to help pay education expenses.
  • Institutional loans. This type of loan is not a federal loan – it is similar to a private loan. It is provided directly from your school or a loan-servicer hired by your school.
  • Private loans/state loans. If you are not eligible to receive federal aid, a private loan can help you pay the cost of attending school.

To determine if a student loan is federal or not, visit http://www.nslds.ed.gov and enter the requested information. To learn more, contact the student loan lawyers at DeLadurantey Law Office, LLC.

If you would like a down-to-earth approach and a lawyer who will listen carefully to all your questions and concern, call DeLadurantey Law Office, LLC,at (414) 377-0518.  We serve clients primarily in the areas of Chapter 7 and Chapter 13 bankruptcies, debt negotiations and defending foreclosure actions. If you live in the area of Milwaukee, Wisconsin, call us for the debt relief assistance you need. Visit our web site and like us on Facebook.

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