Here is some need-to-know information about student loans, including loan terms and repayment information.

Federal Student Loans
There are two main types of student loans: federal loans and private loans. Federal loans are funded by the federal government. Generally, federal loans have lower interest rates and more favorable terms than private loans, including fixed interest rates and income-based repayment plans. You do not have to start repaying federal student loans until after you graduate, leave school, or change your enrollment status to less than half-time. There are several different types of student loans:

Subsidized loans: Subsidized federal loans do not accumulate interest while you are in school and for the first six months after you graduate. Subsidized loans are offered to students who demonstrate financial need.

Unsubsidized loans: Unsubsidized federal loans do accumulate interest while you are in school. You can choose to make payments on the interest while attending school. Unsubsidized loans are offered to students regardless of demonstrated financial need. Subsidized and unsubsidized loans both have the same interest rate, between 3- and 5% depending on when your loan was issued. The current interest rate is 4.66%.

Perkins loans: Perkins loans are available to students with exceptional financial need. The interest rate for this loan is 5%.

PLUS Loans: PLUS loans are for graduate and professional students or the parents of undergraduate students. The interest rates for these loans are between 6-8% depending on when your loan was disbursed. Your parent is responsible for repaying the loan.

Private Loans
Private loans are issued by private banks like Wells Fargo or Sallie Mae. Private loans often require payments while you’re still in school, unlike federal loans. Private loans can have variable interest rates, which can substantially increase the total amount you repay.

Repayment