There are four common federal student loan programs:

• Perkins Loans 
• Direct Subsidized or Unsubsidized Loans 
• Direct PLUS Loans:
• For graduate/professional students   
• For parents 
• Direct Consolidation Loans

Some lenders also make private student loans. Borrow private loans only after you borrow all of the federal loans you can, and carefully investigate them first:

• Private Student Loan Brochure: Research, Remember, Repay
• Private Student Loan Brochure: Understanding the Cost of Borrowing

Federal Perkins Loans 

• These loans are for undergraduate and graduate students with exceptional financial need.
• Not all schools participate in the loan program.
• The maximum amount you may borrow each year is $4,000.
• The school acts as your lender.
• You are not required to make payments while you attend school at least half-time.
• Interest does not accrue on the loan during in-school, grace, and deferment periods.
• The interest is a fixed rate of 5 percent.
• After leaving school, you have a grace period before repayment begins:
• Your initial grace period is nine months.
• If you re-enroll in school at least half-time during this grace period and are receive an in-school deferment, you get another 9-month grace period the next time you stop attending school.
• If you re-enroll after your initial 9-month grace period has ended, your next grace period will only be six months.

Repayment of Federal Perkins Loans

• The maximum repayment period is 10 years.
• You most likely will be required to make payments each month.
• The minimum monthly payment is $40, but may be higher depending on your balance.
• You may prepay your loan at any time without penalty. Prepayment may substantially reduce your interest costs.

If you ever have difficulty repaying your loan, contact your school or its servicer immediately, as you have options (including deferment and forbearance).
Direct Subsidized or Unsubsidized Loans / Federal Stafford Loans (subsidized or unsubsidized)

• Subsidized Loan
• The loan is awarded on the basis of financial need, determined by the information you provide on the FAFSA (Free Application for Federal Student Aid).
• No interest accrues on the loan if you are in an in-school, grace, or deferment status.
• Unsubsidized Loan
• The loan is not awarded on the basis of need.
• Interest begins to accrue from the date the loan is disbursed, though you can choose to pay it later if you are in an in-school, grace, or deferment status:
• If you don’t pay the accruing interest, your loan holder will add to the principal amount of your loan, which increases the amount you have to repay.
• If you pay the interest as it accumulates, you'll repay less over the life of the loan.

Learn about your loan limits. 

Repayment of Direct Subsidized or Unsubsidized Loans / Federal Stafford Loans (subsidized or unsubsidized)

• After you stop attending school at least half-time, a 6-month grace period begins. You receive only one grace period per loan.
• Repayment begins after the grace period ends.
• The maximum repayment period is 10 years.
• You must make payments each month.
• The minimum monthly payment is $50, but this amount might be higher depending on your loan balance.
• You may prepay your loan at any time without penalty. Prepayment may substantially reduce the amount of interest you pay.

Learn about your repayment options.

Direct PLUS Loans / Federal PLUS Loans for graduate and professional students

• Unlike the Direct and Federal PLUS Loans for parents, this loan is in the student's name and based on the student's credit rating.
• You may borrow up to the cost of education minus any financial aid received. There is no aggregate maximum.
• Loans first disbursed on or after July 1, 2006 have a fixed interest rate of 7.9 percent for Direct PLUS Loans and 8.5 percent for Federal PLUS Loans.
• Interest begins to accrue from the date the loan is disbursed, though you can choose to pay it later if you are in a deferment status:
• If you don’t pay the accruing interest, your loan holder will add to the principal amount of your loan, which increases the amount you have to repay.
• If you pay the interest as it accumulates, you'll repay less over the life of the loan.

Eligibility for Direct PLUS Loans for graduate and professional students

• Complete the FAFSA (Free Application for Federal Student Aid) for the loan period
• Establish your eligibility for the maximum annual amounts of Direct Subsidized and Unsubsidized Loans
• Meet minimum credit requirements

Repayment of Direct PLUS Loans / Federal PLUS Loans for graduate and professional students
The loan enters repayment as soon as it’s fully disbursed; however, you can request a deferment while you are in school and until six months after you graduate, withdraw, or drop below half-time status at the school. Learn about your repayment options.

Direct PLUS Loans / Federal PLUS Loans for parents

• This is a loan for parents to pay for a dependent student's college education.
• The loan is in the parent’s name, so the parent is responsible for repaying the loan.
• You may borrow up to the cost of education minus any financial aid received. There is no aggregate maximum.
• Loans first disbursed on or after July 1, 2006 have a fixed interest rate of 7.9 percent for Direct PLUS Loans and 8.5 percent for Federal PLUS Loans.
• Interest begins to accrue from the date the loan is disbursed, though you can choose to pay it later if you are in a deferment status:
• If you don’t pay the accruing interest, your loan holder will add to the principal amount of your loan, which increases the amount you have to repay.
• If you pay the interest as it accumulates, you'll repay less over the life of the loan.

Eligibility for Direct PLUS Loans for parents

• The dependent student and parent must complete the FAFSA (Free Application for Federal Student Aid).
• The student must establish eligibility for the maximum annual amounts of Direct Subsidized and Unsubsidized Loans.
• The parent must meet minimum credit requirements

Repayment of Direct PLUS Loans / Federal PLUS Loans for graduate and professional students

You would normally be required to start repaying your loan effective the date the loan is fully disbursed; however, you can request to defer repayment during the time you or your child are enrolled at least half-time and up to six months after you or your child graduate, withdraw, or drop below half-time status in school. Learn about your repayment options.

Direct Consolidation Loans / Federal Consolidation Loans 

Consolidation allows you to combine multiple federal student loans, resulting in one loan payment and one loan with the William D. Ford Federal Direct Loan Program:

• Consolidation can result in a lower, fixed interest rate if the variable rates on the loans you wish to consolidate are due to increase.
• Consolidation can extend your repayment period from the standard ten years, lowering your monthly payment. This most likely will mean you'll pay more interest over time.

Learn more about consolidation, including loans eligible for consolidation, repayment terms, pros and cons, and how to apply. Estimate the repayment period, amount, and interest rate if you consolidate.