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Major Public Student Loans
The two major public student loan programs currently available are: The William D. Ford Federal Direct Loan and the Federal Perkins Loan Program. Which of these offers Stafford and PLUS loans?
- The Direct Loan program
- Perkins Loan program
- Both the Direct Loan and Perkins Loan programs
“A” is correct. The Stafford loan is the most common federal student loan. It can be “subsidized” or “unsubsidized.” The interest on subsidized loans is paid for you by the government while you’re in school or on deferment. The interest on unsubsidized loans starts when you receive the funds. If you plan ahead and pay this interest as it accrues, it will save you money in the end.