Do Your Students and Their Parents Understand the Different Types of Federal Loans?

If not, we found a recently published guide that can help them. U.S. News & World Report just published a blog that outlines the four different types of federal funding with an overview of each.

Four types of federal student loans are available:

• Direct subsidized loans
• Direct unsubsidized loans
• Direct PLUS loans
• Direct consolidation loans

Here is a link to their post giving an overview of each type: https://www.usnews.com/education/best-colleges/paying-for-college/articles/understanding-federal-student-loan-types

We recommend researching grants and scholarships but realistically those will not cover the entire cost of college so some funding is necessary. Federal loans are typically preferrable to private student loans as they typically will have lower interest rates. This guide can help your students decide which source may be right for them.