Types of Student Loans Intro/Vocab

Econ. Class

Student Loans Types

Various financial aid options for students to help pay for their education, including federal loans, private loans, and subsidized or unsubsidized loans.

Subsidized Student Loan

A federal loan where the government pays the interest while the student is in school and during deferment periods.

Unsubsidized Student Loan

A federal loan that accrues interest while the student is in school and during deferment periods, meaning the student is responsible for all interest payments.

Direct Plus Student Loan

A federal loan available to graduate students and parents of dependent undergraduate students that helps pay for education expenses, often with higher interest rates compared to subsidized loans.

Private Student Loan

A non-federal loan provided by banks, credit unions, or other private lenders to help students pay for education costs, typically requiring a credit check and often with variable interest rates.