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Looking for a Federal Student Loan? What You Need To Know.

Updated: Apr 4, 2023

Federal student loans are a great way to pay for college. However, there are different types of federal student loans with different federal student loans interest rates.

It is important that you understand the differences in each type before deciding which one is right for your needs. Not all of them offer the same benefits and protections - this can be especially true if you are trying to determine how much financial aid assistance or parental contributions will cover your costs of enrollment and are concerned with federal student loan rates.

The four types of Federal Student Loans include:

  • Direct Subsidized Loans

  • Direct Unsubsidized Loans

  • Perkins' Loan Program (offered specifically to undergrads)

  • Direct PLUS / Parent Plus

The type of repayment plan for each type of loan will depend on your personal financial situation and what is most important for you at this time.

For example, if you want a lower monthly payment but have an irregular income or don't know how much money you'll make every year, then Income-Based Repayment might be best for you.

If saving money is more important than having low payments, then Pay As You Earn may be right up your alley. One thing's clear though - this decision can feel overwhelming without help from someone who understands all of these options in depth like our experts do!

Contact us today to see how we can help with selecting the perfect repayment program that fits your goals.



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