Summing It Up

  • You may qualify for Federal Student Loans (under the FFELP, Direct or Perkins Loan Program).
  • The terms and conditions of Federal Students Loans may be more favorable than Private Loans.
  • Federal Student loans must be repaid, with interest, just like car loans and credit cards.
  • Federal Student Loans are generally not discharged if you file for bankruptcy.
  • For students who are eligible for a subsidized Stafford loan, (under either FFELP or the Direct Loan Program) the U.S. Department of Education pays the interest while you are in school at least half-time, for the first six months after you leave school and during a deferment.
  • Unsubsidized Stafford loans (under either FFELP or the Direct Loan Program) do not require a student to have a financial need. The borrower is responsible for paying all the interest on all unsubsidized loans.