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