Money to go to college that has to be paid back with interest.

Need Based

  • No interest while in college

  • Usually the Perkins Loan or a Direct Subsidized Loan (interest rate is 4.53%)

Non-need Based

  • Interest does accrue during college

  • Two types:

    • Direct Unsubsidized Loan (interest rate is 4.53%)

    • Parent Plus Loan (interest rate is 7.08%) - parent can be held accountable for the loan debt