About Student Loans
Different types of student loans offer varying interest rates and repayment benefits. In addition to commercial and private student loans
which are funded by banks, credit unions and other types of lenders, the most common student loans are those owned by the federal government.
Types of Federal Student Loans
When you are enrolled at least half-time, you may qualify for either subsidized loans or unsubsidized loans from the Department of
Education, or you may receive a financial aid package with both. The main difference is that the government pays the
interest on subsidized loans while you’re in school at least
half-time or while you defer your loans. You are responsible for any interest that accrues on an unsubsidized loan.
Find Out What Type of Federal Loan You Have
Go to Loan Detail, or visit
Federal Student Aid to view loan type(s).
The Step-by-Step Guide to Student Loans
The life cycle of a student loan begins when you sign the Master Promissory Note (MPN) and lasts until you make the final
payment. Taking out student loans is a major step in your life, and a big financial commitment. Depending on the type of
loan(s) you have, you should be aware of what actions you need to take to successfully repay your loan.
Federal Direct Loans have three steps that a borrower usually moves through. Based on where you are in the student loan life
cycle (in school, in grace or in repayment), we will communicate with you about what actions you may need to take or information
you should be aware of. See a summary of the steps below in the Federal Direct Loan life cycle.
Private loans and other types of federal student loans may offer varying terms related to the grace period, interest rates
and student loan benefits. Check with your loan servicers to learn more about your specific terms and conditions.
Steps in the Federal Direct Loan Life Cycle
Direct Subsidized and Direct Unsubsidized Loans
Direct Graduate PLUS Loan
Direct Parent PLUS Loan