managing student loans
Major Public Student Loan Programs
The three major public student loan programs are: The William D. Ford Federal Direct Loan, the Federal Family Education Loan (FFELP - offered through June, 2010), and the Federal Perkins Loan Program. Which of these offer Stafford and PLUS loans?
- The Direct Loan and FFELP programs
- The Direct Loan and Perkins Loan programs
- The FFELP 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. You can choose to pay this interest as it accrues or have it added to your loan balance.