When it comes to financing higher education, many students turn to student loans to help cover the cost of tuition, books, and living expenses. While there are various types of student loans available, one important distinction to be aware of is whether the loan is federal or private. Federal student loans are loans that are provided by the U.S. Department of Education, while private student loans are offered by banks, credit unions, and other financial institutions.
Direct Subsidized Loans are available to undergraduate students with demonstrated financial need, and the interest on these loans is paid by the government while the student is in school. Direct Unsubsidized Loans are available to both undergraduate and graduate students, and interest begins accruing as soon as the loan is disbursed. Direct PLUS Loans are available to graduate students and parents of dependent undergraduate students, and require a credit check.
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