Thinking About Upcoming
College Expenses?

Going to school can be expensive. Many students and their families use federal or private student loans to help pay for education after high school.

Here we will discuss the different types of student loans available, the consumer protections available to student loan borrowers, and tips for getting the most out of your student loans.

Federal student loans come from the Department of Education. These include:

Direct Subsidized Loans – made to eligible students who demonstrate a financial need to help cover the costs of school.

Direct Unsubsidized Loans – made to eligible students regardless of their financial need.

Direct PLUS Loans – made to graduate and professional students as well as parents of dependent undergraduate students to assist with paying for costs not covered by other financial aid.

Direct Consolidation Loans – allow students to combine all of their eligible federal student loans into one loan with one loan servicer.

These loans offer important benefits. For example, if you have a Direct Subsidized Loan, the federal government will pay the interest on the loan while you are in school. In addition, the interest rates on federal loans typically are fixed, meaning you will not be surprised by a potential increase in your loan’s interest rate. Federal loans also allow you to make payments based on your income, defer payments under certain circumstances (such as if you go back to school), and may be forgiven after 10 years if you pursue a career in public service.

Private student loans are made by a lender, such as a bank, credit union, or other financial institution. Generally, the lender will consider several factors when reviewing your application for private student loans, including your credit history and whether you have a co-signer. Private loans may offer variable interest rates, so the interest rate may rise during the life of the loan. These loans also often have fewer options to reduce or postpone payments and less flexible payment options.

Many consumer protection laws apply to student loans. For example:

If you are looking for ways to finance your – or your child’s -- education:

If you are out of school: